COVERED ASSETS AND FDIC INDEMNIFICATION ASSET (Tables)

12 Months Ended

Dec. 31, 2013

COVERED ASSETS AND FDIC INDEMNIFICATION ASSET

Carrying amounts and composition of covered loans

	December 31,
	2013		2012
	(In thousands)
Real estate loans:
Residential single-family	$	290,095	$	362,345
Residential multifamily	403,508		647,440
Commercial and industrial real estate	1,103,530		1,348,556
Construction and land	163,833		417,631
Total real estate loans	1,960,966		2,775,972
Other loans:
Commercial business	426,621		587,333
Other consumer	73,973		87,651
Total other loans	500,594		674,984
Total principal balance	2,461,560		3,450,956
Covered discount	(265,917)		(510,208)
Net valuation of loans	2,195,643		2,940,748
Allowance on covered loans	(7,745)		(5,153)
Total covered loans, net	$	2,187,898	$	2,935,595

Schedule of covered loan portfolio by credit quality indicator

			Special
	Pass/Watch		Mention		Substandard		Doubtful		Total
					(In thousands)
December 31, 2013
Real estate loans:
Residential single-family	$	281,246	$	733	$	8,116	$	—	$	290,095
Residential multifamily	373,024		785		29,699		—		403,508
Commercial and industrial real estate	857,376		27,851		211,835		6,468		1,103,530
Construction and land	41,847		9,472		111,616		898		163,833
Total real estate loans	1,553,493		38,841		361,266		7,366		1,960,966
Other loans:
Commercial business	378,086		4,635		43,797		103		426,621
Other consumer	72,053		128		1,792		—		73,973
Total other loans	450,139		4,763		45,589		103		500,594
Total principal balance	$	2,003,632	$	43,604	$	406,855	$	7,469	$	2,461,560

			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

	Year Ending December 31 ,
	2013		2012
	(In thousands)
Covered nonaccrual loans(1) (2) (3)	$	126,895	$	204,310
Covered loans past due 90 days or more but not on nonaccrual	—		—
Total nonperforming loans	126,895		204,310
Other real estate owned covered, net	21,373		26,808
Total covered nonperforming assets	$	148,268	$	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 $17.7 million and $29.6 million of loans at December 31, 2013 and 2012, respectively, accounted for under ASC 310-10, of which some loans have additional partial balances accounted for under ASC 310-30.

Schedule of covered TDR loan activity

	Year Ending December 31 ,
	2013		2012
	(In thousands)
Balance at beginning of period	$	157,736	$	146,709
Additions	35,865		72,917
Sales	—		—
Transfers to OREO	—		(6,351)
Charge-offs	(10,167)		(8,658)
Paydowns/ Reductions	(67,427)		(46,881)
Balance at end of period	$	116,007	$	157,736

Changes in the accretable yield for the covered loans

	2013		2012
	(In thousands)
Balance at beginning of period	$	556,986	$	785,165
Additions	—		—
Accretion	(347,010)		(382,132)
Changes in expected cash flows	251,569		153,953
Balance at end of period	$	461,545	$	556,986

FDIC indemnification asset activity

	2013		2012
	(In thousands)
Balance at beginning of period	$	316,313	$	511,135
(Amortization) Accretion	(99,055)		(33,815)
Reductions(1)	(95,536)		(143,988)
Estimate of FDIC repayment (2)	(47,014)		(17,019)
Balance at end of period	$	74,708	$	316,313

(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.

Schedule of FDIC receivable activity

	Year Ending December 31 ,
	2013		2012
	(In thousands)
Balance at beginning of period	$	73,091	$	76,646
Net addition due to eligible expense/loss	12,996		72,539
Payment received from the FDIC	(55,826)		(76,094)
Balance at end of period	$	30,261	$	73,091