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

9 Months Ended

Sep. 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:

	September 30,			December 31,
	2011			2010
	(In thousands)
Residential:
Single-family	$	1,517,954		$	1,119,024
Multifamily		942,428			974,745
Total residential		2,460,382			2,093,769
Commercial Real Estate ("CRE"):
Income producing		3,459,001			3,392,984
Construction		192,988			278,047
Land		179,152			235,707
Total CRE		3,831,141			3,906,738
Commercial and Industrial ("C&I"):
Commercial business		2,542,313			1,674,698
Trade finance		469,839			308,657
Total C&I		3,012,152			1,983,355
Consumer:
Student loans		260,283			490,314
Other consumer		243,292			243,212
Total consumer		503,575			733,526
Total gross loans receivable, excluding covered loans		9,807,250			8,717,388
Unearned fees, premiums, and discounts, net		(16,746	)		(56,781	)
Allowance for loan losses, excluding covered loans		(211,738	)		(230,408	)
Loans receivable, excluding covered loans, net	$	9,578,766		$	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 September 30, 2011 and December 31, 2010. As of September 30, 2011, non-covered loans graded Substandard and Doubtful have decreased by a net $133.5 million, or 19% from December 31, 2010. There were no Loss grade loans as of September 30, 2011 and December 31, 2010.

			Special
	Pass/Watch		Mention		Substandard		Doubtful		Total
	(In thousands)
September 30, 2011
Residential:
Single-family	$	1,483,509	$	11,780	$	22,665	$	-	$	1,517,954
Multifamily		811,509		20,815		110,104		-		942,428
CRE:
Income producing		3,175,101		81,370		202,530		-		3,459,001
Construction		134,865		-		58,123		-		192,988
Land		117,471		7,998		53,683		-		179,152
C&I:
Commercial business		2,421,858		32,461		87,162		832		2,542,313
Trade finance		447,734		6,210		15,895		-		469,839
Consumer:
Student loans		243,292		-		-		-		243,292
Other consumer		255,864		127		4,292		-		260,283
Total	$	9,091,203	$	160,761	$	554,454	$	832	$	9,807,250

			Special
	Pass/Watch		Mention		Substandard		Doubtful		Total
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, past due non-covered loans and loans held for sale, segregated by class of loans, as of September 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)
September 30, 2011
Residential:
Single-family	$	6,196	$	1,201	$	7,397	$	99	$	5,687	$	5,786	$	1,504,771	$	1,517,954
Multifamily		10,797		1,048		11,845		5,468		12,906		18,374		912,209		942,428
CRE:
Income producing		23,833		-		23,833		17,544		27,707		45,251		3,389,917		3,459,001
Construction		472		-		472		1,665		26,648		28,313		164,203		192,988
Land		-		2,197		2,197		1,867		10,113		11,980		164,975		179,152
C&I:
Commercial business		2,211		-		2,211		3,275		10,827		14,102		2,526,000		2,542,313
Trade finance		-		-		-		-		294		294		469,545		469,839
Consumer:
Student loans				-		-		-		-		-		260,283		260,283
Other consumer		259		127		386		-		2,935		2,935		239,971		243,292
Loans held for sale		-		-		-		-		20,674		20,674		231,246		251,920
Total	$	43,768	$	4,573	$	48,341	$	29,918	$	117,791	$	147,709	$	9,863,120		10,059,170
Unearned fees, premiums and discounts, net																(16,746)
Total recorded investment in non-covered loans and loans held for sale															$	10,042,424

	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						For the Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
	(In thousands)
Interest income that would have been recognized had nonaccrual loans performed in accordance with their original terms	$	2,360		$	3,957		$	7,923		$	11,479
Less: Interest income recognized on nonaccrual loans on a cash basis		(756	)		(3,235	)		(2,267	)		(5,437	)
Interest income foregone on nonaccrual loans	$	1,604		$	722		$	5,656		$	6,042

Loans modified as troubled debt restructurings

The following table provides information on loans modified as of September 30, 2011 that were modified as TDRs during the three and nine months ended September 30, 2011:

	Loans Modified as TDRs During the
	Three Months Ended September 30, 2011
			Pre-Modification		Post-Modification
	Number		Outstanding		Outstanding
	of		Recorded		Recorded		Financial
	Contracts		Investment		Investment (1)		Impact (2)
	(Dollars in thousands)
Residential:
Single-family		4	$	990	$	987	$	328
Multifamily		4	$	1,722	$	1,040	$	1,220
CRE:
Income producing		2	$	5,116	$	5,097	$	-
Construction		1	$	2,859	$	2,859	$	-
Land		6	$	4,311	$	4,307	$	1,507
C&I:
Commercial business		4	$	548	$	542	$	885
Trade finance		1	$	4,127	$	4,127	$	-
Consumer:
Student loans		-	$	-	$	-	$	-
Other consumer		-	$	-	$	-	$	-

	Loans Modified as TDRs During the
	Nine Months Ended September 30, 2011
			Pre-Modification		Post-Modification
	Number		Outstanding		Outstanding
	of		Recorded		Recorded		Financial
	Contracts		Investment		Investment (1)		Impact (2)
	(Dollars in thousands)
Residential:
Single-family		9	$	2,204	$	2,089	$	430
Multifamily		11	$	5,136	$	4,436	$	1,344
CRE:
Income producing		8	$	22,648	$	19,273	$	3,796
Construction		2	$	3,267	$	3,748	$	-
Land		15	$	40,651	$	36,111	$	1,874
C&I:
Commercial business		16	$	8,916	$	7,233	$	2,053
Trade finance		1	$	4,127	$	4,127	$	-
Consumer:
Student loans		-	$	-	$	-	$	-
Other consumer		-	$	-	$	-	$	-

                 _______________________

(1) Includes subsequent payments after modification and reflects the balance as of September 30, 2011.

(2) The financial impact includes chargeoffs and specific reserves recorded at modification date.

Troubled debt restructurings that subsequently defaulted

The following table provides information on TDRs that subsequently defaulted as of September 30, 2011 for the nine months ended September 30, 2011. There were no TDRs that subsequently defaulted during the three months ended September 30, 2011.

	Loans Modified as TDRs that Subsequently
	Defaulted During the
	Nine Months Ended September 30, 2011
	Number of		Recorded
	Contracts		Investment
	(Dollars in thousands)
Residential:
Single-family		-	$	-
Multifamily		-	$	-
CRE:
Income producing		-	$	-
Construction		1	$	890
Land		5	$	13,241
C&I:
Commercial business		1	$	51
Trade finance		-	$	-
Consumer:
Student loans		-	$	-
Other consumer		-	$	-

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

Impaired non-covered loans as of September 30, 2011 and December 31, 2010 are set forth in the following tables. The interest income recognized on impaired loans, excluding performing TDRs, is recognized on a cash basis when received.

											For the three months				For the nine months
											ended September 30, 2011				ended September 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 (1)		Average Recorded Investment		Interest Income Recognized(1)
	(In thousands)
As of and for the three and nine months ended September 30, 2011
Residential:
Single-family	$	11,678	$	10,064	$	1,286	$	11,350	$	487	$	11,502	$	20	$	11,666	$	61
Multifamily		35,400		28,767		4,609		33,376		997		34,764		94		35,074		283
CRE:
Income producing		89,316		54,555		9,969		64,524		2,563		65,496		259		66,745		776
Construction		64,526		35,065		595		35,660		595		47,064		183		51,520		550
Land		44,832		30,816		3,799		34,615		1,648		38,428		92		39,393		276
C&I:
Commercial business		34,074		17,802		3,362		21,164		2,147		26,375		104		27,730		311
Trade finance		4,489		4,421		-		4,421		-		4,466		1		4,472		2
Consumer:
Student loans		-		-		-		-		-		-		-		-		-
Other consumer		3,728		2,852		-		2,852		-		3,029		3		3,099		8
Total	$	288,043	$	184,342	$	23,620	$	207,962	$	8,437	$	231,124	$	756	$	239,699	$	2,267

	Unpaid Principal		Recorded Investment With No		Recorded Investment With		Total Recorded		Related		Average Recorded		Interest Income
	Balance		Allowance		Allowance		Investment		Allowance		Investment		Recognized (1)
	(In thousands)
As of and for the year ended December 31, 2010 (2)
Residential:
Single-family	$	19,769	$	18,521	$	355	$	18,876	$	219	$	21,212	$	209
Multifamily		34,708		32,012		631		32,643		90		39,350		540
CRE:
Income producing		95,899		82,345		6,354		88,699		1,557		100,004		2,174
Construction		88,586		81,789		2,436		84,225		1,366		95,324		1,728
Land		39,937		22,082		6,920		29,002		4,324		32,820		1,326
C&I:
Commercial business		37,668		23,044		3,897		26,941		2,468		27,378		1,199
Trade finance		-				-		-		-		-		-
Consumer:				-
Student loans		-				-		-		-		-		-
Other consumer		1,261		620		-		620		-		1,072		28
Total	$	317,828	$	260,413	$	20,593	$	281,006	$	10,024	$	317,160	$	7,204

______________________

(1) Excludes interest from performing TDRs.

(2) The table has been corrected to include performing TDRs in the prior period presentation. Previously, the Company did not include performing TDRs as impaired loans. The amount of performing TDR's as of December 31, 2010 totaled approximately $122 million.

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 three and nine months ended September 30, 2011 and the year ended December 31, 2010. Allocation of a portion of the allowance to one segment of the loan portfolio does not preclude its availability to absorb losses in other segments.

													Covered Loans
													Subject to
													Allowance for
	Residential			CRE			C&I			Consumer			Loan Losses (1)		Unallocated			Total
	(In thousands)
Nine months ended September 30, 2011
Beginning balance	$	49,491		$	117,752		$	59,737		$	3,428		$	4,225	$	-		$	234,633
Provision for loan losses		7,618			10,861			51,223			1,850			2,209		1,245			75,006
Allowance for unfunded loan commitments and letters of credit		-						-			-			-		(1,245	)		(1,245	)
Charge-offs		(9,388	)		(60,248	)		(29,410	)		(1,659	)		-		-			(100,705	)
Recoveries		449			4,502			5,419			113			-		-			10,483
Net charge-offs		(8,939	)		(55,746	)		(23,991	)		(1,546	)		-		-			(90,222	)
Ending balance	$	48,170		$	72,867		$	86,969		$	3,732		$	6,434	$	-		$	218,172

													Covered Loans
													Subject to
													Allowance for
	Residential			CRE			C&I			Consumer			Loan Losses (1)			Unallocated		Total
	(In thousands)
Three Months Ended September 30, 2011
Beginning balance	$	44,630		$	85,686		$	79,985		$	3,524		$	6,731		$	-	$	220,556
Provision for loan losses		7,172			1,193			13,471			461			(297	)		-		22,000
Allowance for unfunded loan commitments and letters of credit		-			-			-			-			-			-		-
Charge-offs		(3,835	)		(15,863	)		(7,602	)		(275	)		-			-		(27,575	)
Recoveries		203			1,851			1,115			22			-			-		3,191
Net charge-offs		(3,632	)		(14,012	)		(6,487	)		(253	)		-			-		(24,384	)
Ending balance	$	48,170		$	72,867		$	86,969		$	3,732		$	6,434		$	-	$	218,172
Ending balance allocated to:
Loans individually evaluated for impairment	$	1,484		$	4,843		$	2,147		$	-		$	-		$	-	$	8,474
Loans collectively evaluated for impairment		46,686			68,024			84,822			3,732			6,434			-		209,698
Loans acquired with deteriorated credit quality (2)		-			-			-			-			-			-		-
Ending balance	$	48,170		$	72,867		$	86,969		$	3,732		$	6,434		$	-	$	218,172

													Covered Loans
													Subject to
													Allowance for
	Residential			CRE			C&I			Consumer			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 September 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:

									Covered Loans
									Subject to
									Allowance for
	Residential		CRE		C&I		Consumer		Loan Losses		Total
	(In thousands)
September 30, 2011
Loans individually evaluated for impairment	$	44,726	$	134,799	$	25,585	$	2,852	$	-	$	207,962
Loans collectively evaluated for impairment		2,415,656		3,696,342		2,986,567		500,723		586,604		10,185,892
Loans acquired with deteriorated credit quality (1)		1,401,215		2,487,186		471,994		71,268		-		4,431,663
Ending balance	$	3,861,597	$	6,318,327	$	3,484,146	$	574,843	$	586,604	$	14,825,517

									Covered Loans
									Subject to
									Allowance for
	Residential		CRE		C&I		Consumer		Loan Losses		Total
	(In thousands)
December 31, 2010
Loans individually evaluated for impairment	$	51,519	$	201,926	$	26,941	$	620	$	-	$	281,006
Loans collectively evaluated for impairment		2,042,250		3,704,812		1,956,415		732,905		561,725		8,998,107
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.