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

9 Months Ended

Sep. 30, 2013

NON-COVERED LOANS AND ALLOWANCE FOR LOAN LOSSES

Summary of loans receivable, excluding covered loans

	September 30,			December 31,
	2013			2012
	(In thousands)
Residential:
Single-family	$	3,000,923		$	2,187,323
Multifamily	976,847			900,708
Total residential	3,977,770			3,088,031
Commercial Real Estate (“CRE”):
Income producing	4,128,494			3,644,035
Construction	121,597			121,589
Land	112,521			129,071
Total CRE	4,362,612			3,894,695
Commercial and Industrial (“C&I”):
Commercial business	4,199,686			3,569,388
Trade finance	681,682			661,877
Total C&I	4,881,368			4,231,265
Consumer:
Student loans	702,291			475,799
Other consumer	675,147			269,083
Total consumer	1,377,438			744,882
Total gross loans receivable, excluding covered loans	14,599,188			11,958,873
Unearned fees, premiums, and discounts, net	(26,165		)	(19,301		)
Allowance for loan losses, excluding covered loans	(234,236		)	(229,382		)
Loans receivable, excluding covered loans, net	$	14,338,787		$	11,710,190

Summary of non-covered loans by credit quality

			Special
	Pass/Watch		Mention		Substandard		Doubtful		Total
	(In thousands)
September 30, 2013
Residential:
Single-family	$	2,972,736	$	12,748	$	15,439	$	—	$	3,000,923
Multifamily	893,439		6,018		77,390		—		976,847
CRE:
Income producing	3,854,619		50,737		223,138		—		4,128,494
Construction	93,783		6,160		21,654		—		121,597
Land	78,989		6,797		26,735		—		112,521
C&I:
Commercial business	3,939,345		147,826		112,515		—		4,199,686
Trade finance	666,477		12,313		2,892		—		681,682
Consumer:
Student loans	701,103		171		1,017		—		702,291
Other consumer	671,747		457		2,943		—		675,147
Total	$	13,872,238	$	243,227	$	483,723	$	—	$	14,599,188

			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)
September 30, 2013
Residential:
Single-family	$	7,857	$	3,371	$	11,228	$	281	$	8,819	$	9,100	$	2,980,595	$	3,000,923
Multifamily	5,503		1,450		6,953		20,642		8,479		29,121		940,773		976,847
CRE:
Income producing	7,868		25,281		33,149		13,175		16,976		30,151		4,065,194		4,128,494
Construction	—		—		—		—		6,888		6,888		114,709		121,597
Land	92		555		647		756		3,301		4,057		107,817		112,521
C&I:
Commercial business	1,340		3,007		4,347		6,622		15,305		21,927		4,173,412		4,199,686
Trade finance	—		84		84		—		863		863		680,735		681,682
Consumer:
Student loans	1,307		171		1,478		—		1,017		1,017		699,796		702,291
Other consumer	187		655		842		—		758		758		673,547		675,147
Loans held for sale	—		—		—		—		—		—		232,309		232,309
Total	$	24,154	$	34,574	$	58,728	$	41,476	$	62,406	$	103,882	$	14,668,887	14,831,497

Unearned fees, premiums and discounts, net															(26,165		)
Total recorded investment in non-covered loans and loans held for sale															$	14,805,332

	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 Nine Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
	(In thousands)
Interest income that would have been recognized had nonaccrual loans performed in accordance with their original terms	$	2,211		$	1,497		$	5,220		$	4,994
Less: Interest income recognized on nonaccrual loans on a cash basis	(809		)	(633		)	(1,724		)	(1,526		)
Interest income foregone on nonaccrual loans	$	1,402		$	864		$	3,496		$	3,468

Loans modified as troubled debt restructurings

	Loans Modified as TDRs During the Three Months Ended September 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	—	$	—	$	—	$	—	6	$	1,849	$	1,413	$	533
Multifamily	—	$	—	$	—	$	—	3	$	6,146	$	6,083	$	2,098
CRE:
Income producing	1	$	119	$	117	$	117	3	$	4,869	$	4,257	$	608
Construction	—	$	—	$	—	$	—	—	$	—	$	—	$	—
Land	—	$	—	$	—	$	—	1	$	278	$	93	$	183
C&I:
Commercial business	2	$	14,311	$	14,310	$	4,255	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,
	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	—	$	—	$	—	$	—	8	$	3,117	$	2,572	$	836
Multifamily	1	$	1,093	$	1,082	$	—	10	$	16,833	$	16,572	$	2,958
CRE:
Income producing	5	$	23,286	$	18,722	$	219	8	$	10,118	$	8,282	$	1,169
Construction	—	$	—	$	—	$	—	—	$	—	$	—	$	—
Land	—	$	—	$	—	$	—	2	$	710	$	163	$	260
C&I:
Commercial business	6	$	15,556	$	15,518	$	4,341	12	$	4,926	$	4,580	$	696
Trade finance	—	$	—	$	—	$	—	2	$	2,510	$	1,004	$	1,506
Consumer:
Student loans	—	$	—	$	—	$	—	—	$	—	$	—	$	—
Other consumer	1	$	651	$	644	$	—	1	$	108	$	108	$	—

(1) Includes subsequent payments after modification and reflects the balance as of September 30, 2013 and 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 that Subsequently Defaulted
	During the Three Months Ended September 30,
	2013			2012
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		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 that Subsequently Defaulted
	During the Nine Months Ended September 30,
	2013			2012
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
	(Dollars in thousands)
Residential:
Single-family	2	$	2,830	1	$	190
Multifamily	—	$	—	—	$	—
CRE:
Income producing	—	$	—	1	$	2,916
Construction	—	$	—	—	$	—
Land	—	$	—	—	$	—
C&I:
Commercial business	2	$	500	2	$	537
Trade finance	—	$	—	—	$	—
Consumer:
Student loans	—	$	—	—	$	—
Other consumer	—	$	—	—	$	—

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

											For the Three Months				For the Nine Months
			Recorded		Recorded						Ended September 30, 2013				Ended September 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 nine months ended September 30, 2013
Residential:
Single-family	$	13,964	$	11,486	$	1,596	$	13,082	$	283	$	13,131	$	76	$	13,464	$	198
Multifamily	46,735		38,644		5,256		43,900		526		43,452		251		43,465		445
CRE:
Income producing	70,797		43,577		19,415		62,992		3,929		64,130		254		68,336		546
Construction	6,888		6,888		—		6,888		—		6,888		33		6,888		49
Land	17,999		4,945		7,944		12,889		2,116		12,943		13		13,049		41
C&I:
Commercial business	51,687		12,088		27,639		39,727		9,668		38,604		164		42,612		395
Trade finance	2,745		392		771		1,163		771		1,088		14		2,029		41
Consumer:
Student loans	1,086		1,017		—		1,017		—		1,076		—		869		—
Other consumer	1,902		1,511		—		1,511		—		1,516		4		1,553		9
Total	$	213,803	$	120,548	$	62,621	$	183,169	$	17,293	$	182,828	$	809	$	192,265	$	1,724

											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 $26.8 million and $29.6 million of covered non-accrual loans at September 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 September 30, 2013
Beginning balance	$	47,337		$	72,830		$	105,376		$	7,937		$	7,100		$	2,529		$	—		$	243,109
Provision for loan losses	3,402			(3,169		)	(594		)	1,451			(772		)	(192		)	3,445			3,571
Allowance for unfunded loan commitments and letters of credit	—			—			—			—			—			—			(3,445		)	(3,445		)
Charge-offs	(432		)	(574		)	(1,387		)	(6		)	—			—			—			(2,399		)
Recoveries	469			270			1,243			83			—			—			—			2,065
Net recoveries/(charge-offs)	37			(304		)	(144		)	77			—			—			—			(334		)
Ending balance	$	50,776		$	69,357		$	104,638		$	9,465		$	6,328		$	2,337		$	—		$	242,901
Ending balance allocated to:
Loans individually evaluated for impairment	$	809		$	6,045		$	10,439		$	—		$	—		$	—		$	—		$	17,293
Loans collectively evaluated for impairment	49,967			63,312			94,199			9,465			6,328			—			—			223,271
Covered loans acquired with deteriorated credit quality(2)	—			—			—			—			—			2,337			—			2,337
Ending balance	$	50,776		$	69,357		$	104,638		$	9,465		$	6,328		$	2,337		$	—		$	242,901

													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)
Nine Months Ended September 30, 2013
Beginning balance	$	49,349		$	69,856		$	105,376		$	4,801		$	5,153		$	—	$	—		$	234,535
Provision for loan losses	1,180			223			3,347			5,003			2,511			2,337		2,297			16,898
Allowance for unfunded loan commitments and letters of credit	—			—			—			—			—			—		(2,297		)	(2,297		)
Charge-offs	(1,293		)	(2,341		)	(6,464		)	(1,217		)	(1,336		)	—		—			(12,651		)
Recoveries	1,540			1,619			2,379			878			—			—		—			6,416
Net recoveries/(charge-offs)	247			(722		)	(4,085		)	(339		)	(1,336		)	—		—			(6,235		)
Ending balance	$	50,776		$	69,357		$	104,638		$	9,465		$	6,328		$	2,337	$	—		$	242,901
Ending balance allocated to:
Loans individually evaluated for impairment	$	809		$	6,045		$	10,439		$	—		$	—		$	—	$	—		$	17,293
Loans collectively evaluated for impairment	49,967			63,312			94,199			9,465			6,328			—		—			223,271
Covered loans acquired with deteriorated credit quality(2)	—			—			—			—			—			2,337		—			2,337
Ending balance	$	50,776		$	69,357		$	104,638		$	9,465		$	6,328		$	2,337	$	—		$	242,901

													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)
September 30, 2013
Loans individually evaluated for impairment	$	56,982	$	82,769	$	40,890	$	2,528	$	—	$	—	$	183,169
Covered loans individually evaluated for impairment (2)	—		—		—		—		2,916		—		2,916
Loans collectively evaluated for impairment	3,920,789		4,279,843		4,840,478		1,374,909		340,015		—		14,756,034
Covered loans acquired with deteriorated credit quality (1)	749,699		1,251,784		153,164		44,882		—		148,609		2,348,138
Ending balance	$	4,727,470	$	5,614,396	$	5,034,532	$	1,422,319	$	342,931	$	148,609	$	17,290,257

									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.