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

6 Months Ended

Jun. 30, 2013

NON-COVERED LOANS AND ALLOWANCE FOR LOAN LOSSES

Summary of loans receivable, excluding covered loans

	June 30,			December 31,
	2013			2012
	(In thousands)
Residential:
Single-family	$	2,575,975		$	2,187,323
Multifamily	929,867			900,708
Total residential	3,505,842			3,088,031
Commercial Real Estate (“CRE”):
Income producing	3,917,082			3,644,035
Construction	105,084			121,589
Land	128,218			129,071
Total CRE	4,150,384			3,894,695
Commercial and Industrial (“C&I”):
Commercial business	4,036,795			3,569,388
Trade finance	672,880			661,877
Total C&I	4,709,675			4,231,265
Consumer:
Student loans	615,707			475,799
Other consumer	544,306			269,083
Total consumer	1,160,013			744,882
Total gross loans receivable, excluding covered loans	13,525,914			11,958,873
Unearned fees, premiums, and discounts, net	(28,219		)	(19,301		)
Allowance for loan losses, excluding covered loans	(233,480		)	(229,382		)
Loans receivable, excluding covered loans, net	$	13,264,215		$	11,710,190

Summary of non-covered loans by credit quality

			Special
	Pass/Watch		Mention		Substandard		Doubtful		Total
	(In thousands)
June 30, 2013
Residential:
Single-family	$	2,549,678	$	11,392	$	14,905	$	—	$	2,575,975
Multifamily	843,283		7,459		79,125		—		929,867
CRE:
Income producing	3,659,388		45,802		211,892		—		3,917,082
Construction	77,327		6,160		21,597		—		105,084
Land	79,291		13,043		35,884		—		128,218
C&I:
Commercial business	3,774,340		142,216		120,239		—		4,036,795
Trade finance	659,604		9,124		4,152		—		672,880
Consumer:
Student loans	615,642		65		—		—		615,707
Other consumer	539,178		1,619		3,509		—		544,306
Total	$	12,797,731	$	236,880	$	491,303	$	—	$	13,525,914

			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)
June 30, 2013
Residential:
Single-family	$	12,885	$	6,585	$	19,470	$	4,144	$	3,066	$	7,210	$	2,549,295	$	2,575,975
Multifamily	6,929		570		7,499		21,548		8,678		30,226		892,142		929,867
CRE:
Income producing	15,779		26,227		42,006		5,735		11,536		17,271		3,857,805		3,917,082
Construction	—		—		—		6,888		—		6,888		98,196		105,084
Land	3,332		—		3,332		956		3,357		4,313		120,573		128,218
C&I:
Commercial business	6,256		2,485		8,741		4,214		14,413		18,627		4,009,427		4,036,795
Trade finance	—		—		—		318		545		863		672,017		672,880
Consumer:
Student loans	—		65		65		—		—		—		615,642		615,707
Other consumer	1,104		82		1,186		—		796		796		542,324		544,306
Loans held for sale	—		—		—		—		25,837		25,837		219,189		245,026
Total	$	46,285	$	36,014	$	82,299	$	43,803	$	68,228	$	112,031	$	13,576,610	13,770,940
Unearned fees, premiums and discounts, net															(28,219		)
Total recorded investment in non-covered loans and loans held for sale															$	13,742,721

	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						For the Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
	(In thousands)
Interest income that would have been recognized had nonaccrual loans performed in accordance with their original terms	$	1,353		$	1,767		$	3,009		$	3,497
Less: Interest income recognized on nonaccrual loans on a cash basis	(623		)	(609		)	(1,057		)	(1,073		)
Interest income foregone on nonaccrual loans	$	730		$	1,158		$	1,952		$	2,424

Loans modified as troubled debt restructurings

	Loans Modified as TDRs During the Three Months Ended June 30,
	2013							2012
		Pre-Modification		Post-Modification					Pre-Modification		Post-Modification
	Number	Outstanding		Outstanding				Number	Outstanding		Outstanding
	of	Recorded		Recorded		Financial		of	Recorded		Recorded		Financial
	Contracts	Investment		Investment (1)		Impact (2)		Contracts	Investment		Investment (1)		Impact (2)
	(Dollars in thousands)
Residential:
Single-family	—	$	—	$	—	$	—	1	$	965	$	960	$	207
Multifamily	1	$	1,093	$	1,093	$	—	6	$	10,289	$	10,162	$	861
CRE:
Income producing	4	$	23,167	$	22,934	$	102	1	$	1,146	$	1,144	$	—
Construction	—	$	—	$	—	$	—	—	$	—	$	—	$	—
Land	—	$	—	$	—	$	—	—	$	—	$	—	$	—
C&I:
Commercial business	3	$	1,204	$	1,201	$	86	5	$	1,940	$	1,931	$	399
Trade finance	—	$	—	$	—	$	—	—	$	—	$	—	$	—
Consumer:
Student loans	—	$	—	$	—	$	—	—	$	—	$	—	$	—
Other consumer	—	$	—	$	—	$	—	1	$	108	$	108	$	—

	Loans Modified as TDRs During the Six Months Ended June 30,
	2013							2012
		Pre-Modification		Post-Modification					Pre-Modification		Post-Modification
	Number	Outstanding		Outstanding				Number	Outstanding		Outstanding
	of	Recorded		Recorded		Financial		of	Recorded		Recorded		Financial
	Contracts	Investment		Investment (1)		Impact (2)		Contracts	Investment		Investment (1)		Impact (2)
	(Dollars in thousands)
Residential:
Single-family	—	$	—	$	—	$	—	2	$	1,267	$	1,165	$	302
Multifamily	1	$	1,093	$	1,093	$	—	7	$	10,687	$	10,549	$	861
CRE:
Income producing	4	$	23,167	$	22,934	$	102	4	$	4,465	$	4,040	$	469
Construction	—	$	—	$	—	$	—	—	$	—	$	—	$	—
Land	—	$	—	$	—	$	—	1	$	432	$	70	$	76
C&I:
Commercial business	4	$	1,246	$	1,241	$	86	11	$	4,465	$	4,333	$	689
Trade finance	—	$	—	$	—	$	—	—	$	—	$	—	$	—
Consumer:
Student loans	—	$	—	$	—	$	—	—	$	—	$	—	$	—
Other consumer	1	$	651	$	649	$	—	1	$	108	$	108	$	—

(1) Includes subsequent payments after modification and reflects the balance as of June 30, 2013 and June 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 that Subsequently Defaulted
	During the Three Months Ended June 30,
	2013			2012
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
	(Dollars in thousands)
Residential:
Single-family	1	$	105	—	$	—
Multifamily	—	$	—	—	$	—
CRE:
Income producing	—	$	—	—	$	—
Construction	—	$	—	—	$	—
Land	—	$	—	—	$	—
C&I:
Commercial business	—	$	—	1	$	337
Trade finance	—	$	—	—	$	—
Consumer:
Student loans	—	$	—	—	$	—
Other consumer	—	$	—	—	$	—

	Loans Modified as TDRs that Subsequently Defaulted
	During the Six Months Ended June 30,
	2013			2012
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
	(Dollars in thousands)
Residential:
Single-family	3	$	2,935	—	$	—
Multifamily	—	$	—	—	$	—
CRE:
Income producing	—	$	—	1	$	2,916
Construction	—	$	—	—	$	—
Land	—	$	—	—	$	—
C&I:
Commercial business	2	$	500	3	$	793
Trade finance	—	$	—	—	$	—
Consumer:
Student loans	—	$	—	—	$	—
Other consumer	—	$	—	—	$	—

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

											For the Three Months				For the Six Months
			Recorded		Recorded						Ended June 30, 2013				Ended June 30, 2013
	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 six months ended June 30, 2013
Residential:
Single-family	$	11,931	$	9,300	$	1,814	$	11,114	$	304	$	11,219	$	66	$	11,497	$	126
Multifamily	47,860		27,865		17,221		45,086		1,204		45,230		175		45,407		234
CRE:
Income producing	69,941		32,896		22,422		55,318		3,829		57,105		184		58,098		359
Construction	6,888		—		6,888		6,888		375		6,888		25		6,888		25
Land	18,295		5,204		7,971		13,175		3,727		13,231		16		13,285		31
C&I:
Commercial business	35,946		11,233		10,992		22,225		3,210		23,448		134		24,200		236
Trade finance	2,745		392		771		1,163		498		2,052		20		2,367		41
Consumer:
Student loans	—		—		—		—		—		—		—		—		—
Other consumer	1,937		1,552		—		1,552		—		1,555		3		1,597		5
Total	$	195,543	$	88,442	$	68,079	$	156,521	$	13,147	$	160,728	$	623	$	163,339	$	1,057

											For the Year
			Recorded		Recorded						Ended December 31, 2012
	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 $31.1 million and $29.6 million of covered non-accrual loans at June 30, 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 June 30, 2013
Beginning balance	$	46,880		$	72,958		$	102,346		$	6,612		$	8,118		$	1,992	$	—		$	238,906
Provision for loan losses	704			(426		)	6,241			2,190			186			537		(432		)	9,000
Allowance for unfunded loan commitments and letters of credit	—			—			—			—			—			—		432			432
Charge-offs	(550		)	(762		)	(3,816		)	(865		)	(1,204		)	—		—			(7,197		)
Recoveries	303			1,060			605			—			—			—		—			1,968
Net charge-offs	(247		)	298			(3,211		)	(865		)	(1,204		)	—		—			(5,229		)
Ending balance	$	47,337		$	72,830		$	105,376		$	7,937		$	7,100		$	2,529	$	—		$	243,109
Ending balance allocated to:
Loans individually evaluated for impairment	$	1,508		$	7,931		$	3,708		$	—		$	—		$	—	$	—		$	13,147
Loans collectively evaluated for impairment	45,829			64,899			101,668			7,937			7,100			—		—			227,433
Covered loans acquired with deteriorated credit quality(2)	—			—			—			—			—			2,529		—			2,529
Ending balance	$	47,337		$	72,830		$	105,376		$	7,937		$	7,100		$	2,529	$	—		$	243,109

													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)
Six Months Ended June 30, 2013
Beginning balance	$	49,349		$	69,856		$	105,376		$	4,801		$	5,153		$	—	$	—		$	234,535
Provision for loan losses	(2,222		)	3,392			3,941			3,552			3,283			2,529		(1,148		)	13,327
Allowance for unfunded loan commitments and letters of credit	—			—			—			—			—			—		1,148			1,148
Charge-offs	(861		)	(1,767		)	(5,077		)	(1,211		)	(1,336		)	—		—			(10,252		)
Recoveries	1,071			1,349			1,136			795			—			—		—			4,351
Net charge-offs	210			(418		)	(3,941		)	(416		)	(1,336		)	—		—			(5,901		)
Ending balance	$	47,337		$	72,830		$	105,376		$	7,937		$	7,100		$	2,529	$	—		$	243,109
Ending balance allocated to:
Loans individually evaluated for impairment	$	1,508		$	7,931		$	3,708		$	—		$	—		$	—	$	—		$	13,147
Loans collectively evaluated for impairment	45,829			64,899			101,668			7,937			7,100			—		—			227,433
Covered loans acquired with deteriorated credit quality(2)	—			—			—			—			—			2,529		—			2,529
Ending balance	$	47,337		$	72,830		$	105,376		$	7,937		$	7,100		$	2,529	$	—		$	243,109

													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)
June 30, 2013
Loans individually evaluated for impairment	$	56,200	$	75,381	$	23,388	$	1,552	$	—	$	—	$	156,521
Covered loans individually evaluated for impairment (2)	—		—		—		—		3,162		—		3,162
Loans collectively evaluated for impairment	3,449,642		4,075,003		4,686,287		1,158,461		355,683		—		13,725,076
Covered loans acquired with deteriorated credit quality (1)	816,300		1,360,107		168,387		47,637		—		157,497		2,549,928
Ending balance	$	4,322,142	$	5,510,491	$	4,878,062	$	1,207,650	$	358,845	$	157,497	$	16,434,687

									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 $31.1 million and $29.6 million of covered non-accrual loans at June 30, 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.