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

3 Months Ended

Mar. 31, 2013

NON-COVERED LOANS AND ALLOWANCE FOR LOAN LOSSES

Summary of loans receivable, excluding covered loans

	March 31,			December 31,
	2013			2012
	(In thousands)
Residential:
Single-family	$	2,334,913		$	2,187,323
Multifamily	919,220			900,708
Total residential	3,254,133			3,088,031
Commercial Real Estate (“CRE”):
Income producing	3,754,434			3,644,035
Construction	129,881			121,589
Land	111,997			129,071
Total CRE	3,996,312			3,894,695
Commercial and Industrial (“C&I”):
Commercial business	3,588,228			3,569,388
Trade finance	692,561			661,877
Total C&I	4,280,789			4,231,265
Consumer:
Student loans	562,819			475,799
Other consumer	280,975			269,083
Total consumer	843,794			744,882
Total gross loans receivable, excluding covered loans	12,375,028			11,958,873
Unearned fees, premiums, and discounts, net	(26,329		)	(19,301		)
Allowance for loan losses, excluding covered loans	(228,796		)	(229,382		)
Loans receivable, excluding covered loans, net	$	12,119,903		$	11,710,190

Summary of non-covered loans by credit quality

			Special
	Pass/Watch		Mention		Substandard		Doubtful		Total
	(In thousands)
March 31, 2013
Residential:
Single-family	$	2,310,623	$	6,278	$	18,012	$	—	$	2,334,913
Multifamily	823,560		11,782		83,878		—		919,220
CRE:
Income producing	3,522,732		54,457		177,245		—		3,754,434
Construction	69,511		16,836		43,534		—		129,881
Land	62,383		13,139		36,475		—		111,997
C&I:
Commercial business	3,378,070		94,628		115,530		—		3,588,228
Trade finance	676,601		8,849		7,111		—		692,561
Consumer:
Student loans	562,752		67		—		—		562,819
Other consumer	274,307		1,328		5,340		—		280,975
Total	$	11,680,539	$	207,364	$	487,125	$	—	$	12,375,028

			Special
	Pass/Watch		Mention		Substandard		Doubtful		Total
	(In thousands)
December 31, 2012
Residential:
Single-family	$	2,163,918	$	5,131	$	18,274	$	—	$	2,187,323
Multifamily	781,552		13,510		105,646		—		900,708
CRE:
Income producing	3,416,142		42,222		185,671		—		3,644,035
Construction	63,008		16,885		41,696		—		121,589
Land	79,085		13,232		36,754		—		129,071
C&I:
Commercial business	3,380,212		69,687		119,489		—		3,569,388
Trade finance	632,617		24,778		4,482		—		661,877
Consumer:
Student loans	475,799		—		—		—		475,799
Other consumer	261,136		1,115		6,832		—		269,083
Total	$	11,253,469	$	186,560	$	518,844	$	—	$	11,958,873

Aging analysis of nonaccrual loans 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)
March 31, 2013
Residential:
Single-family	$	5,939	$	1,861	$	7,800	$	497	$	9,097	$	9,594	$	2,317,519	$	2,334,913
Multifamily	4,306		238		4,544		9,593		4,961		14,554		900,122		919,220
CRE:
Income producing	16,489		2,689		19,178		10,533		8,718		19,251		3,716,005		3,754,434
Construction	—		—		—		—		27,044		27,044		102,837		129,881
Land	11,770		—		11,770		305		4,321		4,626		95,601		111,997
C&I:
Commercial business	2,333		229		2,562		7,406		14,714		22,120		3,563,546		3,588,228
Trade finance	—		—		—		373		2,419		2,792		689,769		692,561
Consumer:
Student loans	295		67		362		—		—		—		562,457		562,819
Other consumer	376		3		379		—		1,345		1,345		279,251		280,975
Loans held for sale	—		—		—		—		25,837		25,837		200,798		226,635
Total	$	41,508	$	5,087	$	46,595	$	28,707	$	98,456	$	127,163	$	12,427,905	12,601,663
Unearned fees, premiums and discounts, net															(26,329		)
Total recorded investment in non-covered loans and loans held for sale															$	12,575,334

	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, 2012
Residential:
Single-family	$	4,820	$	2,244	$	7,064	$	1,301	$	9,809	$	11,110	$	2,169,149	$	2,187,323
Multifamily	7,127		924		8,051		6,788		11,052		17,840		874,817		900,708
CRE:
Income producing	18,118		4,731		22,849		9,485		8,354		17,839		3,603,347		3,644,035
Construction	—		—		—		—		27,039		27,039		94,550		121,589
Land	—		—		—		637		3,984		4,621		124,450		129,071
C&I:
Commercial business	3,293		316		3,609		8,068		14,740		22,808		3,542,971		3,569,388
Trade finance	500		—		500		429		2,003		2,432		658,945		661,877
Consumer:
Student loans	71		—		71		—		—		—		475,728		475,799
Other consumer	485		968		1,453		499		3,921		4,420		263,210		269,083
Loans held for sale	—		—		—		—		—		—		174,317		174,317
Total	$	34,414	$	9,183	$	43,597	$	27,207	$	80,902	$	108,109	$	11,981,484	12,133,190
Unearned fees, premiums and discounts, net															(19,301		)
Total recorded investment in non-covered loans and loans held for sale															$	12,113,889

Summary of interest income foregone on nonaccrual loans

	For the Three Months Ended
	March 31,
	2013			2012
	(In thousands)
Interest income that would have been recognized had nonaccrual loans performed in accordance with their original terms	$	1,656		$	1,730
Less: Interest income recognized on nonaccrual loans on a cash basis	(606		)	(701		)
Interest income foregone on nonaccrual loans	$	1,050		$	1,029

Loans modified as troubled debt restructurings

	Loans Modified as TDRs During the
	Three Months Ended March 31, 2013
		Pre-Modification		Post-Modification
	Number	Outstanding		Outstanding
	of	Recorded		Recorded		Financial
	Contracts	Investment		Investment (1)		Impact (2)
	(Dollars in thousands)
Residential:
Single-family	—	$	—	$	—	$	—
Multifamily	—	$	—	$	—	$	—
CRE:
Income producing	—	$	—	$	—	$	—
Construction	—	$	—	$	—	$	—
Land	—	$	—	$	—	$	—
C&I:
Commercial business	1	$	42	$	41	$	—
Trade finance	—	$	—	$	—	$	—
Consumer:
Student loans	—	$	—	$	—	$	—
Other consumer	1	$	651	$	651	$	—

	Loans Modified as TDRs During the
	Three Months Ended March 31, 2012
		Pre-Modification		Post-Modification
	Number	Outstanding		Outstanding
	of	Recorded		Recorded		Financial
	Contracts	Investment		Investment (1)		Impact (2)
	(Dollars in thousands)
Residential:
Single-family	1	$	302	$	206	$	95
Multifamily	1	$	399	$	390	$	—
CRE:
Income producing	4	$	4,103	$	3,683	$	561
Construction	—	$	—	$	—	$	—
Land	1	$	432	$	70	$	77
C&I:
Commercial business	6	$	2,525	$	2,489	$	297
Trade finance	—	$	—	$	—	$	—
Consumer:
Student loans	—	$	—	$	—	$	—
Other consumer	—	$	—	$	—	$	—

(1) Includes subsequent payments after modification and reflects the balance as of March 31, 2013 and 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 that Subsequently Defaulted
	During the Three Months Ended March 31,
	2013			2012
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
	(Dollars in thousands)
Residential:
Single-family	2	$	2,830	—	$	—
Multifamily	—	$	—	2	$	1,109
CRE:
Income producing	—	$	—	—	$	—
Construction	—	$	—	1	$	1,509
Land	—	$	—	—	$	—
C&I:
Commercial business	4	$	817	2	$	227
Trade finance	—	$	—	—	$	—
Consumer:
Student loans	—	$	—	—	$	—
Other consumer	—	$	—	—	$	—

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

			Recorded		Recorded
	Unpaid		Investment		Investment		Total				Average		Interest
	Principal		With No		With		Recorded		Related		Recorded		Income
	Balance		Allowance		Allowance		Investment (2)		Allowance		Investment		Recognized (1)
	(In thousands)
As of and for the three months ended March 31, 2013
Residential:
Single-family	$	14,583	$	11,591	$	2,036	$	13,627	$	408	$	13,988	$	84
Multifamily	40,932		27,730		10,946		38,676		629		38,894		150
CRE:
Income producing	40,836		19,466		15,519		34,985		2,703		35,591		230
Construction	30,298		25,530		1,515		27,045		148		27,042		—
Land	18,731		2,310		11,211		13,521		4,007		13,579		12
C&I:
Commercial business	37,120		17,611		5,448		23,059		4,234		23,636		112
Trade finance	4,649		2,592		500		3,092		500		3,120		16
Consumer:
Student loans	—		—		—		—		—		—		—
Other consumer	2,486		1,732		372		2,104		4		2,166		2
Total	$	189,635	$	108,562	$	47,547	$	156,109	$	12,633	$	158,016	$	606

			Recorded		Recorded
	Unpaid		Investment		Investment		Total				Average		Interest
	Principal		With No		With		Recorded		Related		Recorded		Income
	Balance		Allowance		Allowance		Investment (2)		Allowance		Investment		Recognized (1)
	(In thousands)
As of and for the year ended December 31, 2012
Residential:
Single-family	$	19,318	$	15,610	$	2,598	$	18,208	$	721	$	19,094	$	88
Multifamily	57,464		45,511		8,756		54,267		2,410		54,707		403
CRE:
Income producing	59,574		47,019		7,656		54,675		2,559		57,854		304
Construction	30,815		25,530		1,509		27,039		142		22,696		723
Land	20,317		6,132		8,995		15,127		2,860		17,769		76
C&I:
Commercial business	38,630		20,235		3,835		24,070		2,835		33,343		614
Trade finance	4,124		2,582		—		2,582		—		3,863		48
Consumer:
Student loans	—		—		—		—		—		—		—
Other consumer	4,798		4,528		—		4,528		—		4,631		13
Total	$	235,040	$	167,147	$	33,349	$	200,496	$	11,527	$	213,957	$	2,269

(1) Excludes interest from performing TDRs.

(2) Excludes $37.0 million and $29.6 million of covered non-accrual 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.

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

													Covered Loans			Covered Loans
													under ASC 310-10			under ASC 310-30
													Subject to			Subject to
													Allowance for			Allowance for
	Residential			CRE			C&I			Consumer			Loan Losses (1)			Loan Losses		Unallocated			Total
	(In thousands)
Three Months Ended March 31, 2013
Beginning balance	$	49,349		$	69,856		$	105,376		$	4,801		$	5,153		$	—	$	—		$	234,535
Provision for loan losses	(2,926		)	3,818			(2,300		)	1,362			3,097			1,992		(716		)	4,327
Allowance for unfunded loan commitments and letters of credit	—			—			—			—			—			—		716			716
Charge-offs	(311		)	(1,005		)	(1,261		)	(346		)	(132		)	—		—			(3,055		)
Recoveries	768			289			531			795			—			—		—			2,383
Net charge-offs	457			(716		)	(730		)	449			(132		)	—		—			(672		)
Ending balance	$	46,880		$	72,958		$	102,346		$	6,612		$	8,118		$	1,992	$	—		$	238,906
Ending balance allocated to:
Loans individually evaluated for impairment	$	1,037		$	6,858		$	4,734		$	4		$	—		$	—	$	—		$	12,633
Loans collectively evaluated for impairment	45,843			66,100			97,612			6,608			8,118			—		—			224,281
Covered loans acquired with deteriorated credit quality(2)	—			—			—			—			—			1,992		—			1,992
Ending balance	$	46,880		$	72,958		$	102,346		$	6,612		$	8,118		$	1,992	$	—		$	238,906

													Covered Loans			Covered Loans
													under ASC 310-10			under ASC 310-30
													Subject to			Subject to
													Allowance for			Allowance for
	Residential			CRE			C&I			Consumer			Loan Losses (1)			Loan Losses		Unallocated			Total
	(In thousands)
Year Ended December 31, 2012
Beginning balance	$	52,180		$	66,457		$	87,020		$	4,219		$	6,647		$	—	$	—		$	216,523
Provision for loan losses	3,255			20,977			35,204			2,295			5,016			—		(1,563		)	65,184
Allowance for unfunded loan commitments and letters of credit	—			—			—			—			—			—		1,563			1,563
Charge-offs	(7,700		)	(27,060		)	(21,818		)	(1,824		)	(6,510		)	—		—			(64,912		)
Recoveries	1,614			9,482			4,970			111			—			—		—			16,177
Net charge-offs	(6,086		)	(17,578		)	(16,848		)	(1,713		)	(6,510		)	—		—			(48,735		)
Ending balance	$	49,349		$	69,856		$	105,376		$	4,801		$	5,153		$	—	$	—		$	234,535
Ending balance allocated to:
Loans individually evaluated for impairment	$	3,131		$	5,561		$	2,835		$	—		$	—		$	—	$	—		$	11,527
Loans collectively evaluated for impairment	46,218			64,295			102,541			4,801			5,153			—		—			223,008
Covered loans acquired with deteriorated credit quality(2)	—			—			—			—			—			—		—			—
Ending balance	$	49,349		$	69,856		$	105,376		$	4,801		$	5,153		$	—	$	—		$	234,535

(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, excluding any additional advances subsequent to acquisition date.

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

									Covered Loans		Covered Loans
									under ASC 310-10		under ASC 310-30
									Subject to		Subject to
									Allowance for		Allowance for
	Residential		CRE		C&I		Consumer		Loan Losses		Loan Losses		Total
	(In thousands)
March 31, 2013
Loans individually evaluated for impairment	$	52,303	$	75,551	$	26,151	$	2,104	$	—	$	—	$	156,109
Covered loans individually evaluated for impairment (2)	—		—		—		—		5,237		—		5,237
Loans collectively evaluated for impairment	3,201,830		3,920,761		4,254,638		841,690		403,621		—		12,622,540
Covered loans acquired with deteriorated credit quality (1)	899,754		1,531,686		229,856		50,894		—		96,293		2,808,483
Ending balance	$	4,153,887	$	5,527,998	$	4,510,645	$	894,688	$	408,858	$	96,293	$	15,592,369

									Covered Loans		Covered Loans
									under ASC 310-10		under ASC 310-30
									Subject to		Subject to
									Allowance for		Allowance for
	Residential		CRE		C&I		Consumer		Loan Losses		Loan Losses		Total
	(In thousands)
December 31, 2012
Loans individually evaluated for impairment	$	72,475	$	96,841	$	26,652	$	4,528	$	—	$	—	$	200,496
Covered loans individually evaluated for impairment(2)	—		—		—		—		5,237		—		5,237
Loans collectively evaluated for impairment	3,015,556		3,797,854		4,204,613		740,354		426,448		—		12,184,825
Covered loans acquired with deteriorated credit quality (1)	976,969		1,727,159		261,622		53,521		—		—		3,019,271
Ending balance	$	4,065,000	$	5,621,854	$	4,492,887	$	798,403	$	431,685	$	—	$	15,409,829

(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 $37.0 million and $29.6 million of covered non-accrual 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.