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

6 Months Ended

Jun. 30, 2014

NON-COVERED LOANS AND ALLOWANCE FOR LOAN LOSSES

Schedule of composition of loans receivable, excluding covered loans

	June 30,			December 31,
	2014			2013
	(In thousands)
Residential:
Single-family	$	3,316,581		$	3,192,875
Multifamily	1,133,146			992,434
Total residential	4,449,727			4,185,309
Commercial Real Estate (“CRE”):
Income producing	5,358,710			4,301,030
Construction	233,105			140,186
Land	206,488			143,861
Total CRE	5,798,303			4,585,077
Commercial and Industrial (“C&I”):
Commercial business	5,956,607			4,637,056
Trade finance	716,696			723,137
Total C&I	6,673,303			5,360,193
Consumer:
Student loans	139,736			679,220
Other consumer	1,216,699			868,518
Total consumer	1,356,435			1,547,738
Total loans receivable, excluding covered loans (1)	18,277,768			15,678,317
Unearned fees, premiums, and discounts, net	(5,589		)	(23,672		)
Allowance for loan losses, excluding covered loans	(246,468		)	(241,930		)
Loans receivable, excluding covered loans, net	$	18,025,711		$	15,412,715

(1) Loans net of ASC 310-30 discount.

Summary of credit risk rating categories for the non-covered loans

			Special
	Pass/Watch		Mention		Substandard		Doubtful		Total
	(In thousands)
June 30, 2014
Residential:
Single-family	$	3,297,111	$	7,708	$	11,762	$	—	$	3,316,581
Multifamily	1,075,296		—		57,850		—		1,133,146
CRE:
Income producing	5,056,988		74,904		225,774		1,044		5,358,710
Construction	220,057		6,160		6,888		—		233,105
Land	178,005		6,438		22,045		—		206,488
C&I:
Commercial business	5,627,827		101,399		226,993		388		5,956,607
Trade finance	650,525		53,821		12,350		—		716,696
Consumer:
Student loans	136,553		643		2,540		—		139,736
Other consumer	1,213,739		368		2,592		—		1,216,699
Total	$	17,456,101	$	251,441	$	568,794	$	1,432	$	18,277,768

			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 the Company's 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)
June 30, 2014
Residential:
Single-family	$	8,223	$	743	$	8,966	$	2,844	$	5,637	$	8,481	$	3,299,134	$	3,316,581
Multifamily	4,514		932		5,446		14,385		11,113		25,498		1,102,202		1,133,146
CRE:
Income producing	18,072		7,619		25,691		31,025		12,121		43,146		5,289,873		5,358,710
Construction	—		—		—		—		6,888		6,888		226,217		233,105
Land	2,125		96		2,221		1,467		5,970		7,437		196,830		206,488
C&I:
Commercial business	3,047		4,590		7,637		7,600		16,151		23,751		5,925,219		5,956,607
Trade finance	—		—		—		—		222		222		716,474		716,696
Consumer:
Student loans	599		643		1,242		—		2,540		2,540		135,954		139,736
Other consumer	1,798		11		1,809		2		957		959		1,213,931		1,216,699
Loans held for sale	—		—		—		—		—		—		450,864		450,864
Total (1)	$	38,378	$	14,634	$	53,012	$	57,323	$	61,599	$	118,922	$	18,556,698	18,728,632
Unearned fees, premiums and discounts, net															(5,589		)
Total recorded investment in non-covered loans and loans held for sale															$	18,723,043

(1) Loans net of ASC 310-30 discount.

	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 new troubled debt restructurings modifications on non-covered loans portfolio

	Loans Modified as TDRs During the Three Months Ended June 30,
	2014							2013
		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)
	($ in thousands)
Residential:
Single-family	1	$	1,032	$	1,030	$	—	—	$	—	$	—	$	—
Multifamily	1	$	2,513	$	2,973	$	—	1	$	1,093	$	1,093	$	—
CRE:
Income producing	2	$	5,318	$	5,254	$	—	4	$	23,167	$	22,934	$	102
Construction	—	$	—	$	—	$	—	—	$	—	$	—	$	—
Land	—	$	—	$	—	$	—	—	$	—	$	—	$	—
C&I:
Commercial business	2	$	1,165	$	1,155	$	563	3	$	1,204	$	1,201	$	86
Trade finance	—	$	—	$	—	$	—	—	$	—	$	—	$	—
Consumer:
Student loans	—	$	—	$	—	$	—	—	$	—	$	—	$	—
Other consumer	—	$	—	$	—	$	—	—	$	—	$	—	$	—

	Loans Modified as TDRs During the Six Months Ended June 30,
	2014							2013
		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)
	($ in thousands)
Residential:
Single-family	4	$	6,855	$	5,105	$	—	—	$	—	$	—	$	—
Multifamily	1	$	2,513	$	2,973	$	—	1	$	1,093	$	1,093	$	—
CRE:
Income producing	2	$	5,318	$	5,254	$	—	4	$	23,167	$	22,934	$	102
Construction	—	$	—	$	—	$	—	—	$	—	$	—	$	—
Land	—	$	—	$	—	$	—	—	$	—	$	—	$	—
C&I:
Commercial business	7	$	2,886	$	2,828	$	1,811	4	$	1,246	$	1,241	$	86
Trade finance	—	$	—	$	—	$	—	—	$	—	$	—	$	—
Consumer:
Student loans	—	$	—	$	—	$	—	—	$	—	$	—	$	—
Other consumer	—	$	—	$	—	$	—	1	$	651	$	649	$	—

(1) Includes subsequent payments after modification and reflects the balance as of June 30, 2014 and June 30, 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 June 30,
	2014			2013
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
	($ in thousands)
Residential:
Single-family	—	$	—	1	$	105
Multifamily	—	$	—	—	$	—
CRE:
Income producing	—	$	—	—	$	—
Construction	—	$	—	—	$	—
Land	—	$	—	—	$	—
C&I:
Commercial business	1	$	500	—	$	—
Trade finance	—	$	—	—	$	—
Consumer:
Student loans	—	$	—	—	$	—
Other consumer	—	$	—	—	$	—

	Loans Modified as TDRs that Subsequently Defaulted
	During the Six Months Ended June 30,
	2014			2013
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
	($ in thousands)
Residential:
Single-family	—	$	—	3	$	2,935
Multifamily	—	$	—	—	$	—
CRE:
Income producing	1	$	2,730	—	$	—
Construction	—	$	—	—	$	—
Land	—	$	—	—	$	—
C&I:
Commercial business	1	$	500	2	$	500
Trade finance	—	$	—	—	$	—
Consumer:
Student loans	—	$	—	—	$	—
Other consumer	—	$	—	—	$	—

Summary of impaired non-covered loans

			Recorded		Recorded
	Unpaid		Investment		Investment		Total
	Principal		With No		With		Recorded		Related
	Balance		Allowance		Allowance		Investment (1)		Allowance
	(In thousands)
As of June 30, 2014
Residential:
Single-family	$	16,220	$	13,427	$	1,067	$	14,494	$	192
Multifamily	39,108		27,617		9,139		36,756		1,185
CRE:
Income producing	65,663		39,638		18,135		57,773		2,555
Construction	6,888		6,888		—		6,888		—
Land	17,059		4,217		7,865		12,082		1,991
C&I:
Commercial business	54,236		10,497		29,182		39,679		18,645
Trade finance	529		256		273		529		273
Consumer:
Other consumer	763		763		—		763		—
Total	$	200,466	$	103,303	$	65,661	$	168,964	$	24,841

			Recorded		Recorded
	Unpaid		Investment		Investment		Total
	Principal		With No		With		Recorded		Related
	Balance		Allowance		Allowance		Investment (1)		Allowance
	(In thousands)
As of December 31, 2013
Residential:
Single-family	$	15,814	$	13,585	$	1,588	$	15,173	$	207
Multifamily	43,821		30,899		10,215		41,114		1,339
CRE:
Income producing	73,777		39,745		25,523		65,268		5,976
Construction	6,888		6,888		—		6,888		—
Land	17,390		4,372		7,908		12,280		2,082
C&I:
Commercial business	48,482		10,850		27,487		38,337		13,787
Trade finance	2,771		438		752		1,190		752
Consumer:
Student loans	1,749		1,681		—		1,681		—
Other consumer	1,945		1,546		—		1,546		—
Total	$	212,637	$	110,004	$	73,473	$	183,477	$	24,143

(1) Excludes $14.3 million and $17.7 million of covered non-accrual loans at June 30, 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.

Schedule of average recorded investment in impaired loans and the amount of interest income recognized on impaired loans by portfolio segment

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2014				2013				2014				2013
	Average recorded investment		Recognized interest income (1)		Average recorded investment		Recognized interest income (1)		Average recorded investment		Recognized interest income (1)		Average recorded investment		Recognized interest income (1)
	(In thousands)								(In thousands)
Residential:
Single-family	$	15,131	$	65	$	11,219	$	38	$	14,034	$	115	$	11,497	$	77
Multifamily	36,683		184		45,230		247		36,817		360		45,407		456
CRE:
Income producing	59,121		303		57,105		1,529		59,917		627		58,098		1,738
Construction	6,888		—		6,888		—		6,888		—		6,888		—
Land	12,128		75		13,231		124		12,179		149		13,285		247
C&I:
Commercial business	41,592		211		23,448		59		42,682		414		24,200		104
Trade finance	546		4		2,052		4		559		8		2,367		7
Consumer:
Other consumer	755		13		1,555		7		752		14		1,597		14
Total impaired loans (excluding PCI)	$	172,844	$	855	$	160,728	$	2,008	$	173,828	$	1,687	$	163,339	$	2,643

(1) Includes interest recognized on accruing TDRs.  Interest payments received on nonaccrual loans are generally reflected as a reduction of principal and not as interest income.

Allowance for loan losses disclosures

Recorded investments in total non-covered loans receivable by portfolio segment, disaggregated by impairment methodology

	Residential		CRE		C&I		Consumer		Total
	(In thousands)
June 30, 2014
Individually evaluated for impairment	$	51,250	$	76,743	$	40,208	$	763	$	168,964
Collectively evaluated for impairment	4,397,218		5,665,843		6,631,178		1,355,672		18,049,911
Acquired with deteriorated credit quality	1,259		55,717		1,917		—		58,893
Ending balance	$	4,449,727	$	5,798,303	$	6,673,303	$	1,356,435	$	18,277,768

	Residential		CRE		C&I		Consumer		Total
	(In thousands)
December 31, 2013
Individually evaluated for impairment	$	56,287	$	84,436	$	39,527	$	3,227	$	183,477
Collectively evaluated for impairment	4,129,022		4,500,641		5,320,666		1,544,511		15,494,840
Ending balance	$	4,185,309	$	4,585,077	$	5,360,193	$	1,547,738	$	15,678,317

Summary of the changes in the accretable yield for the PCI loans acquired from MetroCorp

	Three Months Ended			Six Months Ended
	June 30, 2014
	(In thousands)
Balance at beginning of period	$	6,452		$	—
Additions	—			6,745
Accretion	(1,509		)	(2,265		)
Changes in expected cash flows	824			1,287
Balance at end of period	$	5,767		$	5,767

Non-covered loans

Allowance for loan losses disclosures

Summary of the activity in the allowance for loan losses on the non-covered loans

	Residential			CRE			C&I			Consumer			Unallocated			Total
	(In thousands)
Three Months Ended June 30, 2014
Beginning balance	$	47,827		$	62,739		$	124,201		$	10,851		$	—		$	245,618
Provision for loan losses	(2,046		)	(1,376		)	10,784			753			829			8,944
Provision allocation for unfunded loan commitments and letters of credit	—			—			—			—			(829		)	(829		)
Charge-offs	(61		)	(1,314		)(1)	(6,899		)	(2		)	—			(8,276		)
Recoveries	63			551			393			4			—			1,011
Net recoveries/(charge-offs)	2			(763		)	(6,506		)	2			—			(7,265		)
Ending balance	$	45,783		$	60,600		$	128,479		$	11,606		$	—		$	246,468
Ending balance allocated to:
Individually evaluated for impairment	$	1,377		$	4,546		$	18,918		$	—		$	—		$	24,841
Collectively evaluated for impairment	44,406			55,684			109,561			11,606						221,257
Acquired with deteriorated credit quality	—			370			—			—			—			370
Ending balance	$	45,783		$	60,600		$	128,479		$	11,606		$	—		$	246,468
	Residential			CRE			C&I			Consumer			Unallocated			Total
	(In thousands)
Three Months Ended June 30, 2013
Beginning balance	$	46,880		$	72,958		$	102,346		$	6,612		$	—		$	228,796
Provision for loan losses	704			(426		)	6,241			2,190			(432		)	8,277
Provision allocation for unfunded loan commitments and letters of credit	—			—			—			—			432			432
Charge-offs	(550		)	(762		)	(3,816		)	(865		)	—			(5,993		)
Recoveries	303			1,060			605			—			—			1,968
Net (charge-offs)/recoveries	(247		)	298			(3,211		)	(865		)	—			(4,025		)
Ending balance	$	47,337		$	72,830		$	105,376		$	7,937		$	—		$	233,480
Ending balance allocated to:
Individually evaluated for impairment	$	1,508		$	7,931		$	3,708		$	—		$	—		$	13,147
Collectively evaluated for impairment	45,829			64,899			101,668			7,937			—			220,333
Ending balance	$	47,337		$	72,830		$	105,376		$	7,937		$	—		$	233,480
	Residential			CRE			C&I			Consumer			Unallocated			Total
	(In thousands)
Six Months Ended June 30, 2014
Beginning balance	$	50,717		$	64,677		$	115,184		$	11,352		$	—		$	241,930
Provision for loan losses	(4,790		)	(3,823		)	24,215			252			1,044			16,898
Allowance for unfunded loan commitments and letters of credit	—			—			—			—			(1,044		)	(1,044		)
Charge-offs	(343		)	(1,634		)(1)	(12,224		)	(5		)	—			(14,206		)
Recoveries	199			1,380			1,304			7			—			2,890
Net (charge-offs)/recoveries	(144		)	(254		)	(10,920		)	2			—			(11,316		)
Ending balance	$	45,783		$	60,600		$	128,479		$	11,606		$	—		$	246,468
Ending balance allocated to:
Individually evaluated for impairment	$	1,377		$	4,546		$	18,918		$	—		$	—		$	24,841
Collectively evaluated for impairment	44,406			55,684			109,561			11,606			—			221,257
Acquired with deteriorated credit quality	—			370			—			—			—			370
Ending balance	$	45,783		$	60,600		$	128,479		$	11,606		$	—		$	246,468
	Residential			CRE			C&I			Consumer			Unallocated			Total
	(In thousands)
Six Months Ended June 30, 2013
Beginning balance	$	49,349		$	69,856		$	105,376		$	4,801		$	—		$	229,382
Provision for loan losses	(2,222		)	3,392			3,941			3,552			(1,148		)	7,515
Allowance for unfunded loan commitments and letters of credit	—			—			—			—			1,148			1,148
Charge-offs	(861		)	(1,767		)	(5,077		)	(1,211		)	—			(8,916		)
Recoveries	1,071			1,349			1,136			795			—			4,351
Net recoveries/(charge-offs)	210			(418		)	(3,941		)	(416		)	—			(4,565		)
Ending balance	$	47,337		$	72,830		$	105,376		$	7,937		$	—		$	233,480
Ending balance allocated to:
Individually evaluated for impairment	$	1,508		$	7,931		$	3,708		$	—		$	—		$	13,147
Collectively evaluated for impairment	45,829			64,899			101,668			7,937			—			220,333
Ending balance	$	47,337		$	72,830		$	105,376		$	7,937		$	—		$	233,480

(1) Includes charge-off of $523 thousand relating to PCI loans acquired from MetroCorp.