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

3 Months Ended

Mar. 31, 2014

NON-COVERED LOANS AND ALLOWANCE FOR LOAN LOSSES

Summary of loans receivable, excluding covered loans

	March 31,			December 31,
	2014			2013
	(In thousands)
Residential:
Single-family	$	3,238,298		$	3,192,875
Multifamily	1,111,188			992,434
Total residential	4,349,486			4,185,309
Commercial Real Estate (“CRE”):
Income producing	5,118,377			4,301,030
Construction	197,628			140,186
Land	203,915			143,861
Total CRE	5,519,920			4,585,077
Commercial and Industrial (“C&I”):
Commercial business	5,533,379			4,637,056
Trade finance	667,704			723,137
Total C&I	6,201,083			5,360,193
Consumer:
Student loans	184,900			679,220
Other consumer	1,053,022			868,518
Total consumer	1,237,922			1,547,738
Total loans receivable, excluding covered loans (1)	17,308,411			15,678,317
Unearned fees, premiums, and discounts, net	(9,349		)	(23,672		)
Allowance for loan losses, excluding covered loans	(245,618		)	(241,930		)
Loans receivable, excluding covered loans, net	$	17,053,444		$	15,412,715

(1)       Loans net of ASC 310-30 discount

Summary of non-covered loans by credit quality

			Special
	Pass/Watch		Mention		Substandard		Doubtful		Total
	(In thousands)
March 31, 2014
Residential:
Single-family	$	3,214,552	$	7,591	$	16,155	$	—	$	3,238,298
Multifamily	1,048,621		1,295		61,272		—		1,111,188
CRE:
Income producing	4,813,286		81,582		223,509		—		5,118,377
Construction	184,580		6,160		6,888		—		197,628
Land	170,601		6,298		27,016		—		203,915
C&I:
Commercial business	5,264,264		100,897		167,112		1,106		5,533,379
Trade finance	617,185		31,775		18,744		—		667,704
Consumer:
Student loans	183,062		148		1,690		—		184,900
Other consumer	1,050,210		347		2,465		—		1,053,022
Total	$	16,546,361	$	236,093	$	524,851	$	1,106	$	17,308,411

			Special
	Pass/Watch		Mention		Substandard		Doubtful		Total
	(In thousands)
December 31, 2013
Residential:
Single-family	$	3,167,337	$	8,331	$	17,207	$	—	$	3,192,875
Multifamily	923,697		1,634		67,103		—		992,434
CRE:
Income producing	4,032,269		56,752		212,009		—		4,301,030
Construction	127,138		6,160		6,888		—		140,186
Land	116,000		9,304		18,557		—		143,861
C&I:
Commercial business	4,400,847		92,315		143,894		—		4,637,056
Trade finance	681,345		22,099		19,693		—		723,137
Consumer:
Student loans	677,094		445		1,681		—		679,220
Other consumer	865,752		244		2,522		—		868,518
Total	$	14,991,479	$	197,284	$	489,554	$	—	$	15,678,317

Aging analysis of nonaccrual loans, past due non-covered loans and loans held for sale

	Accruing		Accruing		Total		Nonaccrual		Nonaccrual		Total
	Loans		Loans		Accruing		Loans Less		Loans		Nonaccrual		Current
	30-59 Days		60-89 Days		Past Due		Than 90 Days		90 or More		Past Due		Accruing
	Past Due		Past Due		Loans		Past Due		Days Past Due		Loans		Loans		Total
	(In thousands)
March 31, 2014
Residential:
Single-family	$	7,530	$	3,373	$	10,903	$	3,999	$	10,069	$	14,068	$	3,213,327	$	3,238,298
Multifamily	3,519		2,947		6,466		11,105		11,585		22,690		1,082,032		1,111,188
CRE:
Income producing	25,702		8,280		33,982		23,402		24,354		47,756		5,036,639		5,118,377
Construction	—		—		—		—		6,888		6,888		190,740		197,628
Land	—		2,871		2,871		1,708		9,330		11,038		190,006		203,915
C&I:
Commercial business	3,654		2,906		6,560		4,682		21,777		26,459		5,500,360		5,533,379
Trade finance	—		—		—		500		116		616		667,088		667,704
Consumer:
Student loans	1,215		148		1,363		—		1,690		1,690		181,847		184,900
Other consumer	491		347		838		—		1,321		1,321		1,050,863		1,053,022
Loans held for sale	—		—		—		—		—		—		577,353		577,353
Total	$	42,111	$	20,872	$	62,983	$	45,396	$	87,130	$	132,526	$	17,690,255	17,885,764
Unearned fees, premiums and discounts, net															(9,349		)
Total recorded investment in non-covered loans and loans held for sale															$	17,876,415

	Accruing		Accruing		Total		Nonaccrual		Nonaccrual		Total
	Loans		Loans		Accruing		Loans Less		Loans		Nonaccrual		Current
	30-59 Days		60-89 Days		Past Due		Than 90 Days		90 or More		Past Due		Accruing
	Past Due		Past Due		Loans		Past Due		Days Past Due		Loans		Loans		Total
	(In thousands)
December 31, 2013
Residential:
Single-family	$	4,694	$	922	$	5,616	$	—	$	11,218	$	11,218	$	3,176,041	$	3,192,875
Multifamily	8,580		531		9,111		19,661		7,972		27,633		955,690		992,434
CRE:
Income producing	12,746		1,798		14,544		13,924		22,549		36,473		4,250,013		4,301,030
Construction	—		—		—		—		6,888		6,888		133,298		140,186
Land	—		—		—		265		3,223		3,488		140,373		143,861
C&I:
Commercial business	3,428		6,259		9,687		6,437		15,486		21,923		4,605,446		4,637,056
Trade finance	—		—		—		—		909		909		722,228		723,137
Consumer:
Student loans	541		445		986		—		1,681		1,681		676,553		679,220
Other consumer	293		1		294		175		1,263		1,438		866,786		868,518
Loans held for sale	—		—		—		—		—		—		204,970		204,970
Total	$	30,282	$	9,956	$	40,238	$	40,462	$	71,189	$	111,651	$	15,731,398	15,883,287
Unearned fees, premiums and discounts, net															(23,672		)
Total recorded investment in non-covered loans and loans held for sale															$	15,859,615

Summary of interest income foregone on nonaccrual loans

	For the Three Months Ended
	March 31,
	2014			2013
	(In thousands)
Interest income that would have been recognized had nonaccrual loans performed in accordance with their original terms	$	2,026		$	1,656
Less: Interest income recognized on nonaccrual loans on a cash basis	(769		)	(606		)
Interest income foregone on nonaccrual loans	$	1,257		$	1,050

Loans modified as troubled debt restructurings

	Loans Modified as TDRs During the Three Months Ended March 31,
	2014
		Pre-Modification		Post-Modification
	Number	Outstanding		Outstanding
	of	Recorded		Recorded		Financial
	Contracts	Investment		Investment (1)		Impact (2)
	(Dollars in thousands)
Residential:
Single-family	3	$	5,823	$	5,804	$	—
Multifamily	—	$	—	$	—	$	—
CRE:
Income producing	—	$	—	$	—	$	—
Construction	—	$	—	$	—	$	—
Land	—	$	—	$	—	$	—
C&I:
Commercial business	5	$	1,721	$	1,691	$	1,248
Trade finance	—	$	—	$	—	$	—
Consumer:
Student loans	—	$	—	$	—	$	—
Other consumer	—	$	—	$	—	$	—

	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	$	—

(1)       Includes subsequent payments after modification and reflects the balance as of March 31, 2014 and March 31, 2013.

(2)       The financial impact includes charge-offs and specific reserves recorded at modification date.

Troubled debt restructurings that have subsequently defaulted

	Loans Modified as TDRs that Subsequently Defaulted
	During the Three Months Ended March 31,
	2014			2013
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
	(Dollars in thousands)
Residential:
Single-family	—	$	—	2	$	2,830
Multifamily	—	$	—	—	$	—
CRE:
Income producing	1	$	2,730	—	$	—
Construction	—	$	—	—	$	—
Land	—	$	—	—	$	—
C&I:
Commercial business	1	$	570	4	$	817
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, 2014
Residential:
Single-family	$	19,649	$	17,485	$	1,581	$	19,066	$	200	$	17,100	$	21
Multifamily	38,908		18,568		17,521		36,089		1,653		36,370		164
CRE:
Income producing	75,138		39,216		27,314		66,530		6,317		67,153		382
Construction	6,888		6,888		—		6,888		—		6,888		—
Land	17,306		4,291		7,884		12,175		2,058		12,227		21
C&I:
Commercial business	53,884		11,282		30,622		41,904		16,197		43,726		174
Trade finance	877		584		293		877		293		637		3
Consumer:
Other consumer	746		742		—		742		—		744		2
Total	$	213,396	$	99,056	$	85,215	$	184,271	$	26,718	$	184,845	$	767

			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, 2013
Residential:
Single-family	$	15,814	$	13,585	$	1,588	$	15,173	$	207	$	15,322	$	222
Multifamily	43,821		30,899		10,215		41,114		1,339		35,799		543
CRE:
Income producing	73,777		39,745		25,523		65,268		5,976		71,856		872
Construction	6,888		6,888		—		6,888		—		6,888		61
Land	17,390		4,372		7,908		12,280		2,082		12,453		42
C&I:
Commercial business	48,482		10,850		27,487		38,337		13,787		38,294		520
Trade finance	2,771		438		752		1,190		752		1,603		42
Consumer:
Student loans	1,749		1,681		—		1,681		—		1,664		1
Other consumer	1,945		1,546		—		1,546		—		1,561		16
Total	$	212,637	$	110,004	$	73,473	$	183,477	$	24,143	$	185,440	$	2,319

(1) Excludes interest from performing TDRs.

(2) Excludes $12.8 million and $17.7 million of covered non-accrual loans at March 31, 2014 and December 31, 2013, 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, 2014
Beginning balance	$	50,717		$	64,677		$	115,184		$	11,352		$	5,476		$	2,269		$	—		$	249,675
Provision for loan losses	(2,744		)	(2,447		)	13,431			(501		)	(954		)	(67		)	215			6,933
Provision allocation for unfunded loan commitments and letters of credit	—			—			—			—			—			—			(215		)	(215		)
Charge-offs	(282		)	(320		)	(5,325		)	(3		)	(206		)	—			—			(6,136		)
Recoveries	136			829			911			3			—			—			—			1,879
Net (charge-offs)/recoveries	(146		)	509			(4,414		)	—			(206		)	—			—			(4,257		)
Ending balance	$	47,827		$	62,739		$	124,201		$	10,851		$	4,316		$	2,202		$	—		$	252,136
Ending balance allocated to:
Loans individually evaluated for impairment	$	1,853		$	8,375		$	16,490		$	—		$	—		$	—		$	—		$	26,718
Loans collectively evaluated for impairment	45,974			54,364			107,711			10,851			4,316			—			—			223,216
Covered loans acquired with deteriorated credit quality(2)	—			—			—			—			—			2,202			—			2,202
Ending balance	$	47,827		$	62,739		$	124,201		$	10,851		$	4,316		$	2,202		$	—		$	252,136

													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, 2013
Beginning balance	$	49,349		$	69,856		$	105,376		$	4,801		$	5,153		$	—	$	—		$	234,535
Provision for loan losses	1,918			(6,615		)	12,821			8,055			1,759			2,269		2,157			22,364
Provision allocation for unfunded loan commitments and letters of credit	—			—			—			—			—			—		(2,157		)	(2,157		)
Charge-offs	(3,197		)	(3,357		)	(7,405		)	(2,385		)	(1,436		)	—		—			(17,780		)
Recoveries	2,647			4,793			4,392			881			—			—		—			12,713
Net (charge-offs)/recoveries	(550		)	1,436			(3,013		)	(1,504		)	(1,436		)	—		—			(5,067		)
Ending balance	$	50,717		$	64,677		$	115,184		$	11,352		$	5,476		$	2,269	$	—		$	249,675
Ending balance allocated to:
Loans individually evaluated for impairment	$	1,546		$	8,058		$	14,539		$	—		$	—		$	—	$	—		$	24,143
Loans collectively evaluated for impairment	49,171			56,619			100,645			11,352			5,476			—		—			223,263
Covered loans acquired with deteriorated credit quality(2)	—			—			—			—			—			2,269		—			2,269
Ending balance	$	50,717		$	64,677		$	115,184		$	11,352		$	5,476		$	2,269	$	—		$	249,675

(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, 2014
Loans individually evaluated for impairment	$	55,155	$	85,593	$	42,781	$	742	$	—	$	—	$	184,271
Covered loans individually evaluated for impairment (2)	—		—		—		—		112		—		112
Loans collectively evaluated for impairment	4,292,913		5,366,973		6,152,534		1,237,180		281,822		—		17,331,422
Covered loans acquired with deteriorated credit quality (1)	639,460		1,043,912		128,730		41,659		—		124,264		1,978,025
MetroCorp loans acquired with deteriorated credit quality	1,417		67,353		5,770		—		—		—		74,540
Ending balance	$	4,988,945	$	6,563,831	$	6,329,815	$	1,279,581	$	281,934	$	124,264	$	19,568,370

									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, 2013
Loans individually evaluated for impairment	$	56,287	$	84,436	$	39,527	$	3,227	$	—	$	—	$	183,477
Covered loans individually evaluated for impairment(2)	—		—		—		—		2,824		—		2,824
Loans collectively evaluated for impairment	4,129,022		4,500,641		5,320,666		1,544,511		317,361		—		15,812,201
Covered loans acquired with deteriorated credit quality (1)	681,608		1,140,432		146,538		43,136		—		129,661		2,141,375
Ending balance	$	4,866,917	$	5,725,509	$	5,506,731	$	1,590,874	$	320,185	$	129,661	$	18,139,877

(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 $12.8 million and $17.7 million of covered non-accrual loans at March 31, 2014 and December 31, 2013, respectively, accounted for under ASC 310-10, of which some loans have additional partial balances accounted for under ASC 310-30.