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

9 Months Ended

Sep. 30, 2014

NON-COVERED LOANS AND ALLOWANCE FOR LOAN LOSSES

Schedule of composition of non-covered loans

	September 30,			December 31,
	2014			2013
	(In thousands)
Residential:
Single-family	$	3,472,725		$	3,192,875
Multifamily	1,176,570			992,434
Total residential	4,649,295			4,185,309
Commercial Real Estate (“CRE”):
Income producing	5,463,209			4,301,030
Construction	287,341			140,186
Land	198,800			143,861
Total CRE	5,949,350			4,585,077
Commercial and Industrial (“C&I”):
Commercial business	6,539,640			4,637,056
Trade finance	744,018			723,137
Total C&I	7,283,658			5,360,193
Consumer:
Student loans	93,179			679,220
Other consumer	1,376,074			868,518
Total consumer	1,469,253			1,547,738
Total non-covered loans(1)	19,351,556			15,678,317
Unearned fees, premiums, and discounts, net	(5,171		)	(23,672		)
Allowance for loan losses on non-covered loans	(249,268		)	(241,930		)
Non-covered loans, net	$	19,097,117		$	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)
September 30, 2014
Residential:
Single-family	$	3,449,646	$	5,169	$	17,910	$	—	$	3,472,725
Multifamily	1,114,395		5,149		57,026		—		1,176,570
CRE:
Income producing	5,186,262		72,725		203,445		777		5,463,209
Construction	274,293		6,160		6,888		—		287,341
Land	175,033		6,378		17,389		—		198,800
C&I:
Commercial business	6,264,128		157,768		117,215		529		6,539,640
Trade finance	707,963		19,999		16,056		—		744,018
Consumer:
Student loans	88,786		1,048		3,345		—		93,179
Other consumer	1,372,700		913		2,461		—		1,376,074
Total	$	18,633,206	$	275,309	$	441,735	$	1,306	$	19,351,556

			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
	Loans		Loans		Accruing		Loans Less		Loans		Total		Current
	30-59 Days		60-89 Days		Past Due		Than 90 Days		90 or More		Nonaccrual		Accruing
	Past Due		Past Due		Loans		Past Due		Days Past Due		Loans		Loans		Total
	(In thousands)
September 30, 2014
Residential:
Single-family	$	5,916	$	1,502	$	7,418	$	2,839	$	7,899	$	10,738	$	3,454,569	$	3,472,725
Multifamily	6,166		—		6,166		12,110		12,690		24,800		1,145,604		1,176,570
CRE:
Income producing	14,900		11,044		25,944		27,719		21,058		48,777		5,388,488		5,463,209
Construction	—		—		—		—		6,888		6,888		280,453		287,341
Land	1,119		—		1,119		1,266		2,513		3,779		193,902		198,800
C&I:
Commercial business	29,696		4,474		34,170		6,983		19,794		26,777		6,478,693		6,539,640
Trade finance	750		—		750		111		32		143		743,125		744,018
Consumer:
Student loans	1,350		1,048		2,398		—		3,310		3,310		87,471		93,179
Other consumer	2,576		549		3,125		118		390		508		1,372,441		1,376,074
Loans held for sale	—		—		—		—		—		—		239,649		239,649
Total(1)	$	62,473	$	18,617	$	81,090	$	51,146	$	74,574	$	125,720	$	19,384,395	19,591,205
Unearned fees, premiums and discounts, net															(5,171		)
Total recorded investment in non-covered loans and loans held for sale															$	19,586,034

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

	Accruing		Accruing		Total		Nonaccrual		Nonaccrual
	Loans		Loans		Accruing		Loans Less		Loans		Total		Current
	30-59 Days		60-89 Days		Past Due		Than 90 Days		90 or More		Nonaccrual		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 the non-covered loan portfolio

	Loans Modified as TDRs During the Three Months Ended September 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	2	$	1,474	$	1,473	$	—	—	$	—	$	—	$	—
Multifamily	—	$	—	$	—	$	—	—	$	—	$	—	$	—
CRE:
Income producing	—	$	—	$	—	$	—	1	$	119	$	117	$	117
Construction	—	$	—	$	—	$	—	—	$	—	$	—	$	—
Land	—	$	—	$	—	$	—	—	$	—	$	—	$	—
C&I:
Commercial business	1	$	54	$	54	$	10	2	$	14,311	$	14,310	$	4,255
Trade finance	1	$	190	$	111	$	14	—	$	—	$	—	$	—
Consumer:
Student loans	—	$	—	$	—	$	—	—	$	—	$	—	$	—
Other consumer	1	$	509	$	504	$	—	—	$	—	$	—	$	—

	Loans Modified as TDRs During the Nine Months Ended September 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	9	$	11,454	$	8,356	$	—	—	$	—	$	—	$	—
Multifamily	1	$	2,513	$	2,832	$	—	1	$	1,093	$	1,082	$	—
CRE:
Income producing	2	$	5,318	$	5,193	$	—	5	$	23,286	$	18,722	$	219
Construction	—	$	—	$	—	$	—	—	$	—	$	—	$	—
Land	—	$	—	$	—	$	—	—	$	—	$	—	$	—
C&I:
Commercial business	8	$	2,940	$	2,167	$	1,821	6	$	15,556	$	15,518	$	4,341
Trade finance	1	$	190	$	111	$	14	—	$	—	$	—	$	—
Consumer:
Student loans	—	$	—	$	—	$	—	—	$	—	$	—	$	—
Other consumer	1	$	509	$	504	$	—	1	$	651	$	644	$	—

⁽¹⁾ Includes subsequent payments after modification and reflects the balance as of September 30, 2014 and September 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 September 30,
	2014			2013
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
	($ in thousands)
Residential:
Single-family	—	$	—	—	$	—
Multifamily	—	$	—	—	$	—
CRE:
Income producing	—	$	—	—	$	—
Construction	—	$	—	—	$	—
Land	—	$	—	—	$	—
C&I:
Commercial business	1	$	967	—	$	—
Trade finance	—	$	—	—	$	—
Consumer:
Student loans	—	$	—	—	$	—
Other consumer	—	$	—	—	$	—

	Loans Modified as TDRs that Subsequently Defaulted
	During the Nine Months Ended September 30,
	2014			2013
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
	($ in thousands)
Residential:
Single-family	—	$	—	2	$	2,830
Multifamily	—	$	—	—	$	—
CRE:
Income producing	—	$	—	—	$	—
Construction	—	$	—	—	$	—
Land	—	$	—	—	$	—
C&I:
Commercial business	1	$	967	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 September 30, 2014
Residential:
Single-family	$	20,954	$	12,697	$	6,911	$	19,608	$	413
Multifamily	37,873		20,610		14,899		35,509		1,467
CRE:
Income producing	70,152		45,456		16,496		61,952		2,349
Construction	6,888		6,888		—		6,888		—
Land	13,334		2,860		5,649		8,509		1,931
C&I:
Commercial business	50,191		7,909		34,713		42,622		20,750
Trade finance	368		—		363		363		47
Consumer:
Other consumer	1,261		1,153		108		1,261		1
Total	$	201,021	$	97,573	$	79,139	$	176,712	$	26,958

			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 $9.2 million and $17.7 million of covered non-accrual loans at September 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								Nine Months Ended
	September 30,								September 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	$	19,668	$	87	$	13,131	$	37	$	19,372	$	263	$	13,464	$	117
Multifamily	35,547		177		43,452		224		35,610		529		43,465		680
CRE:
Income producing	62,973		273		64,130		406		64,820		940		68,336		2,113
Construction	6,888		—		6,888		—		6,888		—		6,888		—
Land	8,581		75		12,943		124		8,676		224		13,049		371
C&I:
Commercial business	42,832		207		38,604		200		42,403		619		42,612		564
Trade finance	363		4		1,088		4		383		12		2,029		8
Consumer:
Student loans	—		—		1,076		—		—		—		869		—
Other consumer	1,264		12		1,516		7		1,259		35		1,553		21
Total impaired loans (excluding PCI)	$	178,116	$	835	$	182,828	$	1,002	$	179,411	$	2,622	$	192,265	$	3,874

⁽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)
September 30, 2014
Individually evaluated for impairment	$	55,117	$	77,349	$	42,985	$	1,261	$	176,712
Collectively evaluated for impairment	4,592,862		5,819,505		7,238,997		1,467,992		19,119,356
Acquired with deteriorated credit quality	1,316		52,496		1,676		—		55,488
Ending balance	$	4,649,295	$	5,949,350	$	7,283,658	$	1,469,253	$	19,351,556

	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			Nine Months Ended
	September 30, 2014
	(In thousands)
Balance at beginning of period	$	5,767		$	—
Additions	—			6,745
Accretion	(1,228		)	(3,493		)
Changes in expected cash flows	669			1,956
Balance at end of period	$	5,208		$	5,208

Non-covered loans

Allowance for loan losses disclosures

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

	Residential			CRE			C&I			Consumer			Unallocated			Total
	(In thousands)
Three Months Ended September 30, 2014
Beginning balance	$	45,783		$	60,600		$	128,479		$	11,606		$	—		$	246,468
(Reversal of) provision for loan losses	(835		)	(16		)	8,406			624			(623		)	7,556
Provision allocation for unfunded loan commitments and letters of credit	—			—			—			—			623			623
Charge-offs	(8		)	(1,522		)	(6,693		)	(134		)	—			(8,357		)
Recoveries	95			259			2,621			3			—			2,978
Net recoveries/(charge-offs)	87			(1,263		)	(4,072		)	(131		)	—			(5,379		)
Ending balance	$	45,035		$	59,321		$	132,813		$	12,099		$	—		$	249,268
Ending balance allocated to:
Individually evaluated for impairment	$	1,880		$	4,280		$	20,797		$	1		$	—		$	26,958
Collectively evaluated for impairment	43,155			54,751			112,016			12,098			—			222,020
Acquired with deteriorated credit quality	—			290			—			—			—			290
Ending balance	$	45,035		$	59,321		$	132,813		$	12,099		$	—		$	249,268

	Residential			CRE			C&I			Consumer			Unallocated			Total
	(In thousands)
Three Months Ended September 30, 2013
Beginning balance	$	47,337		$	72,830		$	105,376		$	7,937		$	—		$	233,480
Provision for (reversal of) loan losses	3,402			(3,169		)	(594		)	1,451			3,445			4,535
Provision allocation 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		$	—		$	234,236
Ending balance allocated to:
Individually evaluated for impairment	$	809		$	6,045		$	10,439		$	—		$	—		$	17,293
Collectively evaluated for impairment	49,967			63,312			94,199			9,465			—			216,943
Ending balance	$	50,776		$	69,357		$	104,638		$	9,465		$	—		$	234,236

	Residential			CRE			C&I			Consumer			Unallocated			Total
	(In thousands)
Nine Months Ended September 30, 2014
Beginning balance	$	50,717		$	64,677		$	115,184		$	11,352		$	—		$	241,930
(Reversal of) provision for loan losses	(5,625		)	(3,839		)	32,621			876			421			24,454
Provision allocation for unfunded loan commitments and letters of credit	—			—			—			—			(421		)	(421		)
Charge-offs	(351		)	(3,156		)(1)	(18,917		)	(139		)	—			(22,563		)
Recoveries	294			1,639			3,925			10			—			5,868
Net charge-offs	(57		)	(1,517		)	(14,992		)	(129		)	—			(16,695		)
Ending balance	$	45,035		$	59,321		$	132,813		$	12,099		$	—		$	249,268
Ending balance allocated to:
Individually evaluated for impairment	$	1,880		$	4,280		$	20,797		$	1		$	—		$	26,958
Collectively evaluated for impairment	43,155			54,751			112,016			12,098			—			222,020
Acquired with deteriorated credit quality	—			290			—			—			—			290
Ending balance	$	45,035		$	59,321		$	132,813		$	12,099		$	—		$	249,268

	Residential			CRE			C&I			Consumer			Unallocated			Total
	(In thousands)
Nine Months Ended September 30, 2013
Beginning balance	$	49,349		$	69,856		$	105,376		$	4,801		$	—		$	229,382
Provision for loan losses	1,180			223			3,347			5,003			2,297			12,050
Provision allocation for unfunded loan commitments and letters of credit	—			—			—			—			(2,297		)	(2,297		)
Charge-offs	(1,293		)	(2,341		)	(6,464		)	(1,217		)	—			(11,315		)
Recoveries	1,540			1,619			2,379			878			—			6,416
Net recoveries/(charge-offs)	247			(722		)	(4,085		)	(339		)	—			(4,899		)
Ending balance	$	50,776		$	69,357		$	104,638		$	9,465		$	—		$	234,236
Ending balance allocated to:
Individually evaluated for impairment	$	809		$	6,045		$	10,439		$	—		$	—		$	17,293
Collectively evaluated for impairment	49,967			63,312			94,199			9,465			—			216,943
Ending balance	$	50,776		$	69,357		$	104,638		$	9,465		$	—		$	234,236

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