NON COVERED LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

6 Months Ended

Jun. 30, 2011

NON COVERED LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract]

Summary of loans receivable, excluding covered loans

The following is a summary of loans receivable, excluding covered loans (“non-covered loans”) for the periods indicated:

	June 30, 2011			December 31, 2010
	(In thousands)
Residential:
Single-family	$	1,286,235		$	1,119,024
Multifamily		950,981			974,745
Total residential		2,237,216			2,093,769
Commercial Real Estate ("CRE"):
Income producing		3,408,560			3,392,984
Construction		216,689			278,047
Land		203,380			235,707
Total CRE		3,828,629			3,906,738
Commercial and Industrial ("C&I"):
Commercial business		2,283,917			1,674,698
Trade finance		400,555			308,657
Total C&I		2,684,472			1,983,355
Consumer:
Student loans		358,378			490,314
Other consumer		230,562			243,212
Total consumer		588,940			733,526
Total gross loans receivable, excluding covered loans		9,339,257			8,717,388
Unearned fees, premiums, and discounts, net		(24,258	)		(56,781	)
Allowance for loan losses, excluding covered loans		(213,825	)		(230,408	)
Loans receivable, excluding covered loans, net	$	9,101,174		$	8,430,199

Summary of non-covered loans by credit quality

The tables below present the non-covered loan portfolio by credit quality indicator as of June 30, 2011 and December 31, 2010.

	Pass/Watch		Special Mention		Substandard		Doubtful		Total
	(In thousands)
June 30, 2011
Residential:
Single-family	$	1,239,576	$	12,477	$	34,182	$	-	$	1,286,235
Multifamily		813,053		21,776		116,152		-		950,981
CRE:
Income producing		3,128,465		79,514		200,581		-		3,408,560
Construction		155,593		-		61,096		-		216,689
Land		124,456		8,039		70,885		-		203,380
C&I:
Commercial business		2,165,099		45,284		68,502		5,032		2,283,917
Trade finance		377,930		11,662		10,963		-		400,555
Consumer:
Student loans		358,378		-		-		-		358,378
Other consumer		225,470		2,064		3,028		-		230,562
Total	$	8,588,020	$	180,816	$	565,389	$	5,032	$	9,339,257

	Pass/Watch		Special Mention		Substandard		Doubtful		Total
	(In thousands)
December 31, 2010
Residential:
Single-family	$	1,076,281	$	12,376	$	30,367	$	-	$	1,119,024
Multifamily		789,631		42,887		142,227		-		974,745
CRE:
Income producing		3,054,197		80,714		258,073		-		3,392,984
Construction		202,385		-		75,662		-		278,047
Land		146,499		4,656		84,552		-		235,707
C&I:
Commercial business		1,553,218		34,449		81,185		5,846		1,674,698
Trade finance		296,430		4,069		8,158		-		308,657
Consumer:
Student loans		490,314		-		-		-		490,314
Other consumer		238,964		1,486		2,762		-		243,212
Total	$	7,847,919	$	180,637	$	682,986	$	5,846	$	8,717,388

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

The tables below present an aging analysis of nonaccrual loans and past due non-covered loans and loans held for sale, segregated by class of loans, as of June 30, 2011 and December 31, 2010:

	Accruing Loans 30-59 Days Past Due		Accruing Loans 60-89 Days Past Due		Total Accruing Past Due Loans		Nonaccrual Loans Less Than 90 Days Past Due		Nonaccrual Loans 90 or More Days Past Due		Total Nonaccrual Past Due Loans		Current Loans		Total
	(In thousands)
June 30, 2011
Residential:
Single-family	$	9,617	$	2,588	$	12,205	$	-	$	13,326	$	13,326	$	1,260,704	$	1,286,235
Multifamily		6,250		637		6,887		3,708		11,174		14,882		929,212		950,981
CRE:
Income producing		13,289		4,084		17,373		3,432		25,699		29,131		3,362,056		3,408,560
Construction		2,859		-		2,859		16,231		17,296		33,527		180,303		216,689
Land		13,410		2,758		16,168		4,782		19,368		24,150		163,062		203,380
C&I:
Commercial business		6,773		5,619		12,392		5,091		17,969		23,060		2,248,465		2,283,917
Trade finance		-		-		-		-		1,109		1,109		399,446		400,555
Consumer:
Student loans		-		-		-		-		-		-		358,378		358,378
Other consumer		1,057		2,064		3,121		-		1,077		1,077		226,364		230,562
Loans held for sale		-		-		-		-		24,471		24,471		302,370		326,841
Total	$	53,255	$	17,750	$	71,005	$	33,244	$	131,489	$	164,733	$	9,430,360		9,666,098
Unearned fees, premiums and discounts, net																(24,258	)
Total recorded investment in non-covered loans and loans held for sale															$	9,641,840

	Accruing Loans 30-59 Days Past Due		Accruing Loans 60-89 Days Past Due		Total Accruing Past Due Loans		Nonaccrual Loans Less Than 90 Days Past Due		Nonaccrual Loans 90 or More Days Past Due		Total Nonaccrual Past Due Loans		Current Loans		Total
	(In thousands)
December 31, 2010
Residential:
Single-family	$	5,449	$	5,432	$	10,881	$	355	$	7,058	$	7,413	$	1,100,730	$	1,119,024
Multifamily		18,894		4,368		23,262		7,694		9,687		17,381		934,102		974,745
CRE:
Income producing		27,002		6,034		33,036		7,962		38,454		46,416		3,313,532		3,392,984
Construction		-		1,486		1,486		25,688		9,778		35,466		241,095		278,047
Land		479		-		479		20,761		8,138		28,899		206,329		235,707
C&I:
Commercial business		3,216		1,086		4,302		14,437		8,235		22,672		1,647,724		1,674,698
Trade finance		-		-		-		-		-		-		308,657		308,657
Consumer:
Student loans		-		-		-		-		-		-		490,314		490,314
Other consumer		781		1,485		2,266		-		620		620		240,326		243,212
Loans held for sale		-		-		-		-		14,062		14,062		205,993		220,055
Total	$	55,821	$	19,891	$	75,712	$	76,897	$	96,032	$	172,929	$	8,688,802		8,937,443
Unearned fees, premiums and discounts, net																(56,781	)
Total recorded investment in non-covered loans and loans held for sale															$	8,880,662

Summary of interest income foregone on nonaccrual loans

The following is a summary of interest income foregone on nonaccrual loans:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2011			2010			2011			2010
	(In thousands)
Interest income that would have been recognized had nonaccrual loans performed in accordance with their original terms	$	2,798		$	3,656		$	5,563		$	7,522
Less: Interest income recognized on nonaccrual loans on a cash basis(1)		(415	)		(1,085	)		(830	)		(2,202	)
Interest income foregone on nonaccrual loans	$	2,383		$	2,571		$	4,733		$	5,320

_______________________

(1) Includes interest income recognized on nonaccrual loans held for sale.

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

Impaired non-covered loans as of June 30, 2011 and December 31, 2010 are set forth in the following tables.

											As of and for the three months ended June 30, 2011				As of and for the six months ended June 30, 2011
	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment  With Allowance		Total Recorded Investment		Related Allowance		Average  Recorded Investment		Interest  Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
As of and for the three and six months ended June 30, 2011
Residential:
Single-family	$	9,089	$	8,539	$	-	$	8,539	$	-	$	8,648	$	3	$	8,884	$	6
Multifamily		17,002		14,479		404		14,883		91		15,257		44		15,542		87
CRE:
Income producing		53,805		27,680		1,451		29,131		342		29,983		68		30,333		137
Construction		52,704		30,831		2,695		33,526		1,187		42,360		54		45,325		108
Land		37,932		17,954		6,196		24,150		552		24,808		89		26,807		178
C&I:
Commercial business		34,295		20,371		2,689		23,060		1,574		24,196		141		25,635		283
Trade finance		2,998		1,109		-		1,109		-		2,055		15		2,370		30
Consumer:
Student loans		-		1,077		-		1,077		-		-		-		-		-
Other consumer		1,688		-		-		-		-		1,078		1		1,137		1
Total	$	209,513	$	122,040	$	13,435	$	135,475	$	3,746	$	148,385	$	415	$	156,033	$	830

	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(In thousands)
As of and for the year ended December 31, 2010
Residential:
Single-family	$	8,272	$	7,058	$	355	$	7,413	$	219	$	9,046	$	209
Multifamily		19,065		16,751		631		17,382		90		18,835		540
CRE:
Income producing		53,615		40,062		6,354		46,416		1,557		53,678		2,174
Construction		41,200		33,030		2,436		35,466		1,366		39,076		1,728
Land		39,840		21,979		6,920		28,899		4,324		32,722		1,326
C&I:
Commercial business		32,273		18,774		3,897		22,671		2,468		22,800		1,199
Trade finance		-		-		-		-		-		-		-
Consumer:
Student loans		-		-		-		-		-		-		-
Other consumer		1,261		620		-		620		-		1,072		28
Total	$	195,526	$	138,274	$	20,593	$	158,867	$	10,024	$	177,229	$	7,204

Detail of activity in allowance for loan losses, for both covered and non-covered loans, by portfolio segment

The following tables detail activity in the allowance for loan losses, for both non-covered and covered loans, by portfolio segment for the six months ended June 30, 2011 and the year ended December 31, 2010.

	Residential			CRE			C&I			Consumer			Covered Loans Subject to Allowance for Loan Losses(1)		Unallocated			Total
	(In thousands)
Six months ended June 30, 2011
Beginning balance	$	49,491		$	117,752		$	59,737		$	3,428		$	4,225	$	-		$	234,633
Provision for loan losses		446			9,668			37,752			1,389			2,506		1,245			53,006
Allowance for unfunded loan commitments and letters of credit		-			-			-			-			-		(1,245	)		(1,245	)
Charge-offs		(5,553	)		(44,385	)		(21,808	)		(1,384	)		-		-			(73,130	)
Recoveries		246			2,651			4,304			91			-		-			7,292
Net charge-offs		(5,307	)		(41,734	)		(17,504	)		(1,293	)		-		-			(65,838	)
Ending balance	$	44,630		$	85,686		$	79,985		$	3,524		$	6,731	$	-		$	220,556

	Residential			CRE			C&I			Consumer			Covered Loans Subject to Allowance for Loan Losses(1)		Unallocated			Total
	(In thousands)
Three Months Ended June 30, 2011
Beginning balance	$	47,309		$	96,221		$	73,104		$	3,768		$	5,759	$	-		$	226,161
Provision for loan losses		(478	)		9,772			15,725			22			972		487			26,500
Allowance for unfunded loan commitments and letters of credit		-			-			-			-			-		(487	)		(487	)
Charge-offs		(2,216	)		(21,985	)		(11,090	)		(304	)		-		-			(35,595	)
Recoveries		15			1,678			2,246			38			-		-			3,977
Net charge-offs		(2,201	)		(20,307	)		(8,844	)		(266	)		-		-			(31,618	)
Ending balance	$	44,630		$	85,686		$	79,985		$	3,524		$	6,731	$	-		$	220,556
Ending balance allocated to:
Loans individually evaluated for impairment	$	91		$	2,081		$	1,574		$	-		$	-	$	-		$	3,746
Loans collectively evaluated for impairment		44,539			83,605			78,411			3,524			6,731		-			216,810
Loans acquired with deteriorated credit quality(2)		-			-			-			-			-		-			-
Ending balance	$	44,630		$	85,686		$	79,985		$	3,524		$	6,731	$	-		$	220,556

	Residential			CRE			C&I			Consumer			Covered Loans Subject to Allowance for Loan Losses(1)		Unallocated			Total
	(In thousands)
Year ended December 31, 2010
Beginning balance	$	38,025		$	147,591		$	50,487		$	2,730		$	-	$	-		$	238,833
Provision for loan losses		59,525			97,548			34,613			2,415			4,225		1,833			200,159
Allowance for unfunded loan commitments and letters of credit		-			-			-			-			-		(1,833	)		(1,833	)
Charge-offs		(49,685	)		(137,460	)		(35,479	)		(2,579	)		-		-			(225,203	)
Recoveries		1,626			10,073			10,116			862			-		-			22,677
Net charge-offs		(48,059	)		(127,387	)		(25,363	)		(1,717	)		-		-			(202,526	)
Ending balance	$	49,491		$	117,752		$	59,737		$	3,428		$	4,225	$	-		$	234,633
Ending balance allocated to:
Loans individually evaluated for impairment	$	309		$	7,247		$	2,468		$	-		$	-	$	-		$	10,024
Loans collectively evaluated for impairment		49,182			110,505			57,269			3,428			4,225		-			224,609
Loans acquired with deteriorated credit quality(2)		-			-			-			-			-		-			-
Ending balance	$	49,491		$	117,752		$	59,737		$	3,428		$	4,225	$	-		$	234,633

_______________________

(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 all covered loans acquired in the FDIC-assisted acquisitions under ASC 310-30.

Recorded investment in total loans receivable by portfolio segment, disaggregated by impairment methodology

The Company's recorded investment in total loans receivable as of June 30, 2011 and December 31, 2010 related to each balance in the allowance for loan losses by portfolio segment and disaggregated on the basis of the Company's impairment methodology is as follows:

	Residential		CRE		C&I		Consumer		Covered Loans Subject to Allowance for Loan Losses		Total
	(In thousands)
June 30, 2011
Loans individually evaluated for impairment	$	23,421	$	86,808	$	24,169	$	1,077	$	-	$	135,475
Loans collectively evaluated for impairment		2,213,795		3,741,821		2,660,303		587,863		607,475		9,811,257
Loans acquired with deteriorated credit quality(1)		1,473,275		2,634,131		519,949		74,797		-		4,702,152
Ending balance	$	3,710,491	$	6,462,760	$	3,204,421	$	663,737	$	607,475	$	14,648,884

	Residential		CRE		C&I		Consumer		Covered Loans Subject to Allowance for Loan Losses		Total
	(In thousands)
December 31, 2010
Loans individually evaluated for impairment	$	24,795	$	110,781	$	22,671	$	620	$	-	$	158,867
Loans collectively evaluated for impairment		2,068,974		3,795,957		1,960,685		732,905		561,725		9,120,246
Loans acquired with deteriorated credit quality(1)		1,614,732		3,059,133		634,560		85,623		-		5,394,048
Ending balance	$	3,708,501	$	6,965,871	$	2,617,916	$	819,148	$	561,725	$	14,673,161

_______________________

(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.