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Loans Receivable and Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2014
Receivables [Abstract]  
Summary of Loans Receivable by Major Category
The following is a summary of loans receivable by major category:
 
June 30, 2014
 
December 31, 2013
 
(In thousands)
Loan portfolio composition
 
 
 
Real estate loans:
 
 
 
Residential
$
10,019

 
$
10,039

Commercial & industrial
4,089,242

 
3,821,163

Construction
85,037

 
72,856

Total real estate loans
4,184,298

 
3,904,058

Commercial business
929,143

 
949,093

Trade finance
141,053

 
124,685

Consumer and other
93,822

 
98,507

Total loans outstanding
5,348,316

 
5,076,343

Less: deferred loan fees
(1,259
)
 
(2,167
)
Loans receivable
5,347,057

 
5,074,176

Less: allowance for loan losses
(66,870
)
 
(67,320
)
Loans receivable, net of allowance for loan losses
$
5,280,187

 
$
5,006,856
Loans and Leases Acquired, Accretable Yield Movement Schedule
The following table presents changes in the accretable discount on the ACILs for the three and six months ended June 30, 2014 and 2013:
 
Three Months Ended June 30,

Six Months Ended June 30,

2014

2013

2014

2013

(In thousands)
Balance at beginning of period
$
32,583


$
23,410


$
47,398


$
18,651

Additions due to acquisitions during the period
—


—


—


4,945

Accretion
(4,197
)

(3,586
)

(9,064
)

(7,032
)
Changes in expected cash flows
(102
)

17,266


(10,050
)

20,526

Balance at end of period
$
28,284


$
37,090


$
28,284


$
37,090
Allowance for Loan Losses by Portfolio Segment
The following tables detail the activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2014 and 2013:
 
 
 
 
Legacy
 
Acquired
 
Total
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
 
(In thousands)
Three Months Ended June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
38,586

 
$
16,208

 
$
2,944

 
$
467

 
$
6,838

 
$
593

 
$
—

 
$
63

 
$
65,699

Provision (credit) for loan losses
1,066

 
(336
)
 
1,624

 
(69
)
 
622

 
88

 
—

 
1

 
2,996

Loans charged off
(726
)
 
(1,794
)
 
—

 
(18
)
 
(188
)
 
(45
)
 
—

 
—

 
(2,771
)
Recoveries of charge offs
132

 
581

 
—

 
211

 
17

 
3

 
—

 
2

 
946

Balance, end of period
$
39,058

 
$
14,659

 
$
4,568

 
$
591

 
$
7,289

 
$
639

 
$
—

 
$
66

 
$
66,870

Six Months Ended June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
40,068

 
$
16,796

 
$
2,653

 
$
461

 
$
6,482

 
$
796

 
$
—

 
$
64

 
$
67,320

Provision (credit) for loan losses
(348
)
 
2,211

 
1,972

 
(62
)
 
1,073

 
1,099

 
—

 
77

 
6,022

Loans charged off
(813
)
 
(5,519
)
 
(57
)
 
(19
)
 
(283
)
 
(1,265
)
 
—

 
(78
)
 
(8,034
)
Recoveries of charge offs
151

 
1,171

 
—

 
211

 
17

 
9

 
—

 
3

 
1,562

Balance, end of period
$
39,058

 
$
14,659

 
$
4,568

 
$
591

 
$
7,289

 
$
639

 
$
—

 
$
66

 
$
66,870


 
 
 
 
Legacy
 
Acquired
 
Total
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
 
(In thousands)
Three Months Ended June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
43,709

 
$
16,522

 
$
1,698

 
$
538

 
$
9,889

 
$
809

 
$
—

 
$
103

 
$
73,268

Provision (credit) for loan losses
(1,057
)
 
1,043

 
637

 
(20
)
 
(233
)
 
484

 
—

 
(54
)
 
800

Loans charged off
(777
)
 
(1,413
)
 
—

 
(2
)
 
(24
)
 
(684
)
 
—

 
—

 
(2,900
)
Recoveries of charge offs
57

 
368

 
—

 
12

 
—

 
45

 
—

 
25

 
507

Balance, end of period
$
41,932

 
$
16,520

 
$
2,335

 
$
528

 
$
9,632

 
$
654

 
$
—

 
$
74

 
$
71,675

Six Months Ended June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
41,505

 
$
16,490

 
$
2,349

 
$
658

 
$
4,718

 
$
1,115

 
$
3

 
$
103

 
$
66,941

Provision (credit) for loan losses
2,012

 
1,082

 
12

 
(149
)
 
5,087

 
295

 
(3
)
 
(30
)
 
8,306

Loans charged off
(1,682
)
 
(1,596
)
 
(26
)
 
(9
)
 
(175
)
 
(808
)
 
—

 
(33
)
 
(4,329
)
Recoveries of charge offs
97

 
544

 
—

 
28

 
2

 
52

 
—

 
34

 
757

Balance, end of period
$
41,932

 
$
16,520

 
$
2,335

 
$
528

 
$
9,632

 
$
654

 
$
—

 
$
74

 
$
71,675


The following tables disaggregate the allowance for loan losses and the loans outstanding by impairment methodology at June 30, 2014 and December 31, 2013:
 
June 30, 2014
 
Legacy
 
Acquired
 
Total
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
 
(In thousands)
Allowance for loan losses:
Individually evaluated for impairment
$
3,394

 
$
3,225

 
$
2,298

 
$
—

 
$
431

 
$
393

 
$
—

 
$
—

 
$
9,741

Collectively evaluated for impairment
35,664

 
11,434

 
2,270

 
591

 
978

 
246

 
—

 
66

 
51,249

ACILs
—

 
—

 
—

 
—

 
5,880

 
—

 
—

 
—

 
5,880

Total
$
39,058

 
$
14,659

 
$
4,568

 
$
591

 
$
7,289

 
$
639

 
$
—

 
$
66

 
$
66,870

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
53,937

 
$
37,546

 
$
8,985

 
$
516

 
$
19,365

 
$
2,867

 
$
—

 
$
942

 
$
124,158

Collectively evaluated for impairment
3,470,699

 
793,559

 
128,930

 
35,723

 
507,900

 
56,393

 
—

 
28,506

 
5,021,710

ACILs
—

 
—

 
—

 
—

 
132,397

 
38,778

 
3,138

 
28,135

 
202,448

Total
$
3,524,636

 
$
831,105

 
$
137,915

 
$
36,239

 
$
659,662

 
$
98,038

 
$
3,138

 
$
57,583

 
$
5,348,316


 
December 31, 2013
 
Legacy
 
Acquired
 
Total
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
 
(In thousands)
Allowance for loan losses:
Individually evaluated for impairment
$
5,578

 
$
5,183

 
$
159

 
$
32

 
$
1,092

 
$
622

 
$
—

 
$
—

 
$
12,666

Collectively evaluated for impairment
34,490

 
11,613

 
2,494

 
429

 
612

 
174

 
—

 
64

 
49,876

ACILs
—

 
—

 
—

 
—

 
4,778

 
—

 
—

 
—

 
4,778

Total
$
40,068

 
$
16,796

 
$
2,653

 
$
461

 
$
6,482

 
$
796

 
$
—

 
$
64

 
$
67,320

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
49,177

 
$
37,314

 
$
5,692

 
$
535

 
$
19,992

 
$
2,792

 
$
—

 
$
767

 
$
116,269

Collectively evaluated for impairment
3,076,924

 
778,350

 
117,249

 
32,421

 
613,696

 
84,325

 
—

 
31,802

 
4,734,767

ACILs
—

 
—

 
—

 
—

 
144,269

 
46,312

 
1,744

 
32,982

 
225,307

Total
$
3,126,101

 
$
815,664

 
$
122,941

 
$
32,956

 
$
777,957

 
$
133,429

 
$
1,744

 
$
65,551

 
$
5,076,343
Impaired Financing Receivables
The recorded investment in individually impaired loans was as follows:
 
June 30, 2014
 
December 31, 2013
 
(In thousands)
With allocated allowance
 
 
 
Without charge off
$
70,372

 
$
85,920

With charge off
2,134

 
851

With no allocated allowance
 
 
 
Without charge off
43,342

 
23,160

With charge off
8,310

 
6,338

Allowance on impaired loans
(9,741
)
 
(12,666
)
Impaired loans, net of allowance
$
114,417

 
$
103,603


The following tables detail impaired loans (Legacy and APLs that became impaired subsequent to being acquired) as of June 30, 2014 and December 31, 2013 and for the three and six months ended June 30, 2014 and 2013 and for the year ended December 31, 2013. Loans with no related allowance for loan losses are believed by management to have adequate collateral securing their carrying value.
 
 
 
As of June 30, 2014
 
For the Six Months Ended June 30, 2014
 
For the Three Months Ended June 30, 2014
Total Impaired Loans
 
Recorded Investment*
 
Unpaid Contractual Principal Balance
 
Related
Allowance
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
(In thousands)
With related allowance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 

 

 

 

Retail
 
4,063

 
4,227

 
484

 
5,238

 
46

 
4,198

 
27

Hotel & motel
 
11,651

 
11,651

 
1,901

 
11,771

 
266

 
11,696

 
133

Gas station & car wash
 
2,100

 
2,273

 
439

 
2,774

 
38

 
2,589

 
19

Mixed use
 
1,285

 
1,295

 
162

 
1,049

 
20

 
1,109

 
10

Industrial & warehouse
 
6,936

 
6,936

 
53

 
9,104

 
151

 
7,456

 
76

Other
 
7,785

 
7,810

 
786

 
9,353

 
166

 
8,898

 
82

Real estate—construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial business
 
30,087

 
32,184

 
3,618

 
30,875

 
594

 
28,981

 
310

Trade finance
 
8,599

 
15,786

 
2,298

 
6,526

 
99

 
6,990

 
51

Consumer and other
 
—

 
—

 
—

 
178

 
—

 
—

 
—

 
 
$
72,506

 
$
82,162

 
$
9,741

 
$
76,868

 
$
1,380

 
$
71,917

 
$
708

With no related allowance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 

 

 

 

 

 
$
—

 

Real estate—commercial
 
 
 
 
 
 
 

 

 

 

Retail
 
8,358

 
11,904

 
—

 
6,875

 
124

 
8,300

 
62

Hotel & motel
 
6,438

 
11,380

 
—

 
6,480

 
—

 
6,468

 
—

Gas station & car wash
 
4,961

 
8,384

 
—

 
4,820

 
—

 
4,808

 
—

Mixed use
 
1,286

 
1,374

 
—

 
1,143

 
—

 
1,292

 
—

Industrial & warehouse
 
9,334

 
12,889

 
—

 
7,528

 
160

 
9,389

 
83

Other
 
7,517

 
10,087

 
—

 
4,401

 
56

 
5,828

 
30

Real estate—construction
 
1,588

 
1,588

 
—

 
1,606

 
42

 
1,596

 
21

Commercial business
 
10,326

 
11,005

 
—

 
9,345

 
138

 
11,296

 
75

Trade finance
 
386

 
468

 
—

 
453

 
—

 
634

 
—

Consumer and other
 
1,458

 
1,534

 
—

 
1,234

 
15

 
1,468

 
8

 
 
$
51,652

 
$
70,613

 
$
—

 
$
43,885

 
$
535

 
$
51,079

 
$
279

Total
 
$
124,158

 
$
152,775

 
$
9,741

 
$
120,753

 
$
1,915

 
$
122,996

 
$
987


*
Unpaid contractual principal balance less charge offs, interest applied to principal and purchase discounts.
 
 
For the Six Months Ended June 30, 2013
 
For the Three Months Ended June 30, 2013
Total Impaired Loans
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
 
With related allowance:
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
Retail
 
7,529

 
116

 
8,556

 
73

Hotel & motel
 
11,077

 
275

 
12,120

 
138

Gas station & car wash
 
1,711

 
53

 
1,621

 
27

Mixed use
 
1,223

 
23

 
1,385

 
10

Industrial & warehouse
 
8,880

 
127

 
12,283

 
62

Other
 
11,041

 
110

 
8,469

 
55

Real estate—construction
 
—

 
—

 
—

 
—

Commercial business
 
24,529

 
550

 
23,617

 
270

Trade finance
 
4,675

 
—

 
3,913

 
—

Consumer and other
 
221

 
11

 
303

 
6

 
 
$
70,886

 
$
1,265

 
$
72,267

 
$
641

With no related allowance:
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
Retail
 
3,063

 
—

 
3,336

 
—

Hotel & motel
 
6,114

 
—

 
6,065

 
—

Gas station & car wash
 
3,085

 
—

 
3,762

 
—

Mixed use
 
593

 
—

 
441

 
—

Industrial & warehouse
 
4,684

 
5

 
4,830

 
3

Other
 
3,531

 
16

 
4,111

 
8

Real estate—construction
 
1,690

 
45

 
1,680

 
22

Commercial business
 
1,877

 
—

 
2,356

 
—

Trade finance
 
—

 
—

 
—

 
—

Consumer and other
 
1,266

 
10

 
1,259

 
5

 
 
$
25,903

 
$
76

 
$
27,840

 
$
38

Total
 
$
96,789

 
$
1,341

 
$
100,107

 
$
679

*
Unpaid contractual principal balance less charge offs, interest applied to principal and purchase discounts.

 
 
As of June 30, 2014
 
For the Six Months Ended June 30, 2014
 
For the Three Months Ended June 30, 2014
Impaired APLs
 
Recorded Investment*
 
Unpaid
Contractual Principal
Balance
 
Related
Allowance
 
Average
Recorded Investment*
 
Interest Income Recognized during Impairment
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
(In thousands)
With related allowance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail
 
297

 
294

 
2

 
264

 
—

 
201

 
—

Hotel & motel
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Gas station & car wash
 
1,802

 
1,974

 
409

 
1,791

 
30

 
2,289

 
15

Mixed use
 
354

 
348

 
2

 
118

 
—

 
177

 
—

Industrial & warehouse
 
—

 
—

 
—

 
1,709

 
—

 
—

 
—

Other
 
388

 
407

 
17

 
1,054

 
4

 
899

 
2

Real estate—construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial business
 
783

 
1,342

 
393

 
1,240

 
4

 
868

 
3

Trade finance
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Consumer and other
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
$
3,624

 
$
4,365

 
$
823

 
$
6,176

 
$
38

 
$
4,434

 
$
20

With no related allowance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail
 
1,570

 
3,585

 
—

 
1,549

 
15

 
1,702

 
7

Hotel & motel
 
6,317

 
8,674

 
—

 
6,379

 
—

 
6,347

 
—

Gas station & car wash
 
935

 
1,241

 
—

 
1,029

 
—

 
736

 
—

Mixed use
 
455

 
465

 
—

 
307

 
—

 
460

 
—

Industrial & warehouse
 
1,418

 
1,604

 
—

 
3,281

 
5

 
3,981

 
2

Other
 
5,830

 
6,713

 
—

 
3,396

 
20

 
4,526

 
12

Real estate—construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial business
 
2,084

 
2,264

 
—

 
1,505

 
10

 
1,853

 
7

Trade finance
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Consumer and ther
 
942

 
1,018

 
—

 
887

 
4

 
947

 
2

 
 
$
19,551

 
$
25,564

 
$
—

 
$
18,333

 
$
54

 
$
20,552

 
$
30

Total
 
$
23,175

 
$
29,929

 
$
823

 
$
24,509

 
$
92

 
$
24,986

 
$
50



*
Unpaid contractual principal balance less charge offs, interest applied to principal and purchase discounts.



 
 
For the Six Months Ended June 30, 2013
 
For the Three Months Ended June 30, 2013
Impaired APLs
 
Average
Recorded Investment*
 
Interest Income Recognized during Impairment
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
With related allowance:
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
Retail
 
1,546

 
27

 
1,676

 
13

Hotel & motel
 
—

 
—

 
—

 
—

Gas station & car wash
 
270

 
30

 
405

 
16

Mixed use
 
—

 
—

 
—

 
—

Industrial & warehouse
 
7,095

 
—

 
10,227

 
—

Other
 
2,525

 
5

 
1,652

 
2

Real estate—construction
 
—

 
—

 
—

 
—

Commercial business
 
3,112

 
3

 
3,181

 
2

Trade finance
 
—

 
—

 
—

 
—

Consumer and other
 
—

 
—

 
—

 
—

 
 
$
14,548

 
$
65

 
$
17,141

 
$
33

With no related allowance:
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
Retail
 
577

 
—

 
466

 
—

Hotel & motel
 
5,929

 
—

 
5,899

 
—

Gas station & car wash
 
1,132

 
—

 
1,311

 
—

Mixed use
 
—

 
—

 
—

 
—

Industrial & warehouse
 
3,324

 
5

 
3,391

 
3

Other
 
1,397

 
16

 
1,692

 
8

Real estate—construction
 
—

 
—

 
—

 
—

Commercial business
 
189

 
—

 
109

 
—

Trade finance
 
—

 
—

 
—

 
—

Consumer and other
 
786

 
—

 
779

 
—

 
 
$
13,334

 
$
21

 
$
13,647

 
$
11

Total
 
$
27,882

 
$
86

 
$
30,788

 
$
44


*
Unpaid contractual principal balance less charge offs, interest applied to principal and purchase discounts.






 
 
As of December 31, 2013
 
For the Year Ended
December 31, 2013
Total Impaired Loans
 
Recorded Investment*
 
Unpaid
Contractual Principal
Balance
 
Related
Allowance
 
Average
Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
(In thousands)
With related allowance:
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
Retail
 
7,318

 
7,451

 
827

 
7,783

 
181

Hotel & motel
 
11,920

 
12,744

 
2,841

 
11,432

 
550

Gas station & car wash
 
3,145

 
3,236

 
519

 
2,090

 
117

Mixed use
 
930

 
953

 
212

 
1,108

 
43

Industrial & warehouse
 
12,398

 
12,470

 
810

 
9,496

 
323

Other
 
10,262

 
10,351

 
1,461

 
9,826

 
405

Real estate—construction
 
—

 
—

 
—

 
—

 
—

Commercial business
 
34,663

 
36,472

 
5,805

 
27,010

 
1,572

Trade finance
 
5,600

 
5,628

 
159

 
5,313

 
41

Consumer and other
 
535

 
535

 
32

 
348

 
23

 
 
$
86,771

 
$
89,840

 
$
12,666

 
$
74,406

 
$
3,255

With no related allowance:
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
Retail
 
4,025

 
6,591

 
—

 
3,428

 
45

Hotel & motel
 
6,502

 
10,498

 
—

 
6,304

 
—

Gas station & car wash
 
4,845

 
8,273

 
—

 
3,803

 
139

Mixed use
 
845

 
912

 
—

 
697

 
—

Industrial & warehouse
 
3,806

 
7,204

 
—

 
3,958

 
10

Other
 
1,548

 
3,647

 
—

 
3,043

 
—

Real estate—construction
 
1,625

 
1,625

 
—

 
1,670

 
89

Commercial business
 
5,443

 
8,437

 
—

 
2,770

 
25

Trade finance
 
92

 
7,279

 
—

 
18

 
—

Consumer and other
 
767

 
831

 
—

 
1,067

 
—

 
 
$
29,498

 
$
55,297

 
$
—

 
$
26,758

 
$
308

Total
 
$
116,269

 
$
145,137

 
$
12,666

 
$
101,164

 
$
3,563


*
Unpaid contractual principal balance less charge offs, interest applied to principal and purchase discounts.




 
 
As of December 31, 2013
 
For the Year Ended
December 31, 2013
Impaired APLs
 
Recorded Investment*
 
Unpaid Contractual Principal Balance
 
Related Allowance
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
(In thousands)
With related allowance:
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
Retail
 
391

 
397

 
15

 
1,084

 
14

Hotel & motel
 
—

 
—

 
—

 
—

 
—

Gas station & car wash
 
794

 
885

 
341

 
485

 
—

Mixed use
 
—

 
—

 
—

 
—

 
—

Industrial & warehouse
 
5,128

 
5,200

 
612

 
6,323

 
—

Other
 
1,362

 
1,412

 
124

 
1,819

 
43

Real estate—construction
 
—

 
—

 
—

 
—

 
—

Commercial business
 
1,984

 
3,354

 
622

 
2,827

 
5

Trade finance
 
—

 
—

 
—

 
—

 
—

Consumer and other
 
—

 
—

 
—

 
—

 
—

 
 
$
9,659

 
$
11,248

 
$
1,714

 
$
12,538

 
$
62

With no related allowance:
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 

 
 
 
 
 
 
Retail
 
1,244

 
2,216

 
—

 
953

 
14

Hotel & motel
 
6,441

 
8,676

 
—

 
6,169

 
—

Gas station & car wash
 
1,614

 
2,109

 
—

 
1,366

 
62

Mixed use
 
—

 
—

 
—

 
—

 
—

Industrial & warehouse
 
1,883

 
3,446

 
—

 
2,482

 
10

Other
 
1,135

 
1,547

 
—

 
1,600

 
—

Real estate—construction
 
—

 
—

 
—

 
—

 
—

Commercial business
 
808

 
948

 
—

 
291

 
—

Trade finance
 
—

 
—

 
—

 
—

 
—

Consumer and other
 
767

 
831

 
—

 
779

 
—

 
 
$
13,892

 
$
19,773

 
$
—

 
$
13,640

 
$
86

Total
 
$
23,551

 
$
31,021

 
$
1,714

 
$
26,178

 
$
148


*
Unpaid contractual principal balance less charge offs, interest applied to principal and purchase discounts.
Aging of Past Due Loans
The following tables present the aging of past due loans as of June 30, 2014 and December 31, 2013 by class of loans:
 
As of June 30, 2014
 
Past Due and Accruing
 
 
 
 
 
30-59 Days Past Due
 
60-89 Days Past Due
 
90 or More Days Past Due
 
Total
 
Nonaccrual Loans (2)
 
Total Delinquent Loans
 
(In thousands)
Legacy Loans:
 
Real estate—residential
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
Retail
1,170

 
—

 
—

 
1,170

 
3,917

 
5,087

Hotel & motel
284

 
—

 
—

 
284

 
121

 
405

Gas station & car wash
—

 
—

 
—

 
—

 
4,026

 
4,026

Mixed use
—

 
—

 
—

 
—

 
966

 
966

Industrial & warehouse
211

 
—

 
—

 
211

 
2,020

 
2,231

Other
10

 
—

 
—

 
10

 
529

 
539

Real estate—construction
—

 
—

 
—

 
—

 
—

 
—

Commercial business
1,428

 
182

 
—

 
1,610

 
7,409

 
9,019

Trade finance
30

 
—

 
—

 
30

 
3,985

 
4,015

Consumer and other
37

 
28

 
—

 
65

 
—

 
65

     Subtotal
$
3,170

 
$
210

 
$
—

 
$
3,380

 
$
22,973

 
$
26,353

Acquired Loans: (1)
 
 
 
 
 
 
 
 
 
 
 
Real estate—residential
$
—

 
$
—

 

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
Retail
62

 
73

 
—

 
135

 
1,268

 
1,403

Hotel & motel
—

 
—

 
—

 
—

 
6,317

 
6,317

Gas station & car wash
—

 
—

 
—

 
—

 
1,691

 
1,691

Mixed use
5,652

 
—

 
—

 
5,652

 
809

 
6,461

Industrial & warehouse
—

 
—

 
—

 
—

 
1,301

 
1,301

Other
—

 
264

 
—

 
264

 
4,850

 
5,114

Real estate—construction
—

 
—

 
—

 
—

 
—

 
—

Commercial business
684

 
176

 
—

 
860

 
2,159

 
3,019

Trade finance
—

 
—

 
—

 
—

 
—

 
—

Consumer and other
5

 
127

 
—

 
132

 
1,283

 
1,415

     Subtotal
$
6,403

 
$
640

 
$
—

 
$
7,043

 
$
19,678

 
$
26,721

TOTAL
$
9,573

 
$
850

 
$
—

 
$
10,423

 
$
42,651

 
$
53,074

(1) 
The Acquired Loans exclude ACILs.
(2) 
Nonaccrual loans exclude the guaranteed portion of delinquent SBA loans that are in liquidation totaling $30.0 million.

 
As of December 31, 2013
 
Past Due and Accruing
 
 
 
 
 
30-59 Days Past Due
 
60-89 Days Past Due
 
90 or More Days Past Due
 
Total
 
Nonaccrual Loans (2)
 
Total Delinquent Loans
 
(In Thousands)
Legacy Loans:
 
Real estate—residential
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
Retail
122

 
—

 
—

 
122

 
4,363

 
4,485

Hotel & motel
—

 
—

 
—

 
—

 
121

 
121

Gas station & car wash
1,038

 
—

 
—

 
1,038

 
2,228

 
3,266

Mixed use
—

 
—

 
—

 
—

 
974

 
974

Industrial & warehouse
215

 
—

 
—

 
215

 
1,923

 
2,138

Other
—

 
—

 
—

 
—

 
1,398

 
1,398

Real estate—construction
—

 
—

 
—

 
—

 
—

 
—

Commercial business
780

 
244

 
—

 
1,024

 
6,402

 
7,426

Trade finance
—

 
—

 
—

 
—

 
1,031

 
1,031

Consumer and other
54

 
22

 
—

 
76

 
—

 
76

     Subtotal
$
2,209

 
$
266

 
$
—

 
$
2,475

 
$
18,440

 
$
20,915

Acquired Loans: (1)
 
 
 
 
 
 
 
 
 
 
 
Real estate—residential
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
Retail
2,024

 
—

 
—

 
2,024

 
1,030

 
3,054

Hotel & motel
—

 
—

 
—

 
—

 
6,441

 
6,441

Gas station & car wash
1,068

 
—

 
—

 
1,068

 
1,339

 
2,407

Mixed use
576

 
—

 
—

 
576

 
—

 
576

Industrial & warehouse
121

 
—

 
—

 
121

 
6,890

 
7,011

Other
516

 
1,729

 
—

 
2,245

 
1,376

 
3,621

Real estate—construction
—

 
—

 
—

 
—

 
—

 
—

Commercial business
524

 
703

 
5

 
1,232

 
2,708

 
3,940

Trade finance
—

 
—

 
—

 
—

 
—

 
—

Consumer and other
284

 
74

 
—

 
358

 
930

 
1,288

     Subtotal
$
5,113

 
$
2,506

 
$
5

 
$
7,624

 
$
20,714

 
$
28,338

TOTAL
$
7,322

 
$
2,772

 
$
5

 
$
10,099

 
$
39,154

 
$
49,253

(1) 
The Acquired Loans exclude ACILs.
(2) Nonaccrual loans exclude guaranteed portion of delinquent SBA loans that are in liquidation totaling $27.5 million.
Risk Category of Loans by Class of Loans
The following tables present the risk rating for Legacy Loans and Acquired Loans as of June 30, 2014 and December 31, 2013 by class of loans:
 
As of June 30, 2014
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful/Loss
 
Total
 
(In thousands)
Legacy Loans:
 
 
 
Real estate—residential
$
8,804

 
$
—

 
$
—

 
$
—

 
$
8,804

Real estate—commercial
 
 
 
 
 
 
 
 
 
Retail
984,293

 
2,554

 
13,461

 
—

 
1,000,308

Hotel & motel
671,921

 
116

 
5,970

 
—

 
678,007

Gas station & car wash
493,778

 
—

 
10,481

 
—

 
504,259

Mixed use
271,096

 
356

 
2,284

 
—

 
273,736

Industrial & warehouse
308,406

 
3,144

 
12,125

 
—

 
323,675

Other
632,297

 
6,929

 
11,584

 
—

 
650,810

Real estate—construction
83,449

 
—

 
1,588

 
—

 
85,037

Commercial business
769,907

 
18,676

 
41,294

 
1,228

 
831,105

Trade finance
101,017

 
23,844

 
13,054

 
—

 
137,915

Consumer and other
35,683

 
40

 
516

 
—

 
36,239

Subtotal
$
4,360,651

 
$
55,659

 
$
112,357

 
$
1,228

 
$
4,529,895

Acquired Loans:
 
 
 
 
 
 
 
 
 
Real estate—residential
$
807

 
$
295

 
$
113

 
$
—

 
$
1,215

Real estate—commercial
 
 
 
 
 
 
 
 
 
Retail
184,448

 
10,009

 
27,815

 
—

 
222,272

Hotel & motel
102,853

 
7,100

 
14,203

 
—

 
124,156

Gas station & car wash
28,600

 
346

 
11,100

 
251

 
40,297

Mixed use
32,090

 
1,463

 
4,032

 
—

 
37,585

Industrial & warehouse
79,351

 
1,460

 
16,781

 
—

 
97,592

Other
113,330

 
5,756

 
16,885

 
574

 
136,545

Real estate—construction
—

 
—

 
—

 
—

 
—

Commercial business
63,976

 
8,329

 
24,194

 
1,539

 
98,038

Trade finance
3,138

 
—

 
—

 
—

 
3,138

Consumer and other
44,344

 
2,053

 
9,495

 
1,691

 
57,583

Subtotal
$
652,937

 
$
36,811

 
$
124,618

 
$
4,055

 
$
818,421

Total
$
5,013,588

 
$
92,470

 
$
236,975

 
$
5,283

 
$
5,348,316


 
 
As of December 31, 2013
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful/Loss
 
Total
 
(In thousands)
Legacy Loans:
 
 
 
Real estate—residential
$
8,070

 
$
—

 
$
—

 
$
—

 
$
8,070

Real estate—commercial
 
 
 
 
 
 
 
 
 
Retail
842,815

 
858

 
14,365

 
—

 
858,038

Hotel & motel
568,263

 
1,841

 
13,661

 
—

 
583,765

Gas station & car wash
455,205

 
—

 
10,854

 
—

 
466,059

Mixed use
259,788

 
360

 
3,324

 
—

 
263,472

Industrial & warehouse
251,993

 
4,116

 
12,056

 
—

 
268,165

Other
589,895

 
3,928

 
11,493

 
359

 
605,675

Real estate—construction
71,231

 
—

 
1,626

 
—

 
72,857

Commercial business
759,956

 
12,756

 
42,952

 
—

 
815,664

Trade finance
91,055

 
22,589

 
9,297

 
—

 
122,941

Consumer and other
32,389

 
32

 
535

 
—

 
32,956

Subtotal
$
3,930,660

 
$
46,480

 
$
120,163

 
$
359

 
$
4,097,662

Acquired Loans:
 
 
 
Real estate—residential
$
1,066

 
$
284

 
$
619

 
$
—

 
$
1,969

Real estate—commercial
 
 
 
 
 
 
 
 
 
Retail
237,325

 
9,319

 
28,128

 
94

 
274,866

Hotel & motel
109,138

 
7,134

 
14,836

 
179

 
131,287

Gas station & car wash
35,356

 
1,621

 
14,440

 
245

 
51,662

Mixed use
32,992

 
1,467

 
5,316

 
—

 
39,775

Industrial & warehouse
92,570

 
3,525

 
19,720

 
—

 
115,815

Other
133,752

 
6,698

 
21,573

 
560

 
162,583

Real estate—construction
—

 
—

 
—

 
—

 
—

Commercial business
94,854

 
10,266

 
26,245

 
2,064

 
133,429

Trade finance
1,744

 
—

 
—

 
—

 
1,744

Consumer and other
51,036

 
2,695

 
7,460

 
4,360

 
65,551

Subtotal
$
789,833

 
$
43,009

 
$
138,337

 
$
7,502

 
$
978,681

Total
$
4,720,493

 
$
89,489

 
$
258,500

 
$
7,861

 
$
5,076,343
Loans Sold From Loans Held For Investment
 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013
 
2014
 
2013
Reclassification to held for sale
(In thousands)
Real estate - Commercial
$
—

 
$
—

 
$
34

 
$
—

Real estate - Construction
—

 
—

 
—

 
—

Commercial Business
—

 
—

 
—

 
—

     Total
$
—

 
$
—

 
$
34

 
$
—
Allowance for Loan Losses and Impaired Loans, Qualitative and Quantitative Analysis
The following table presents loans by portfolio segment and impairment method at June 30, 2014 and December 31, 2013:
 
 
As of June 30, 2014
 
Real Estate—
Residential
 
Real Estate—
Commercial
 
Real Estate—
Construction
 
Commercial
Business
 
Trade
Finance
 
Consumer
and Other
 
Total
 
(In thousands)
Impaired loans (gross carrying value)
$
—

 
$
71,714

 
$
1,588

 
$
40,413

 
$
8,985

 
$
1,458

 
$
124,158

Specific allowance
$
—

 
$
3,825

 
$
—

 
$
3,618

 
$
2,298

 
$
—

 
$
9,741

Loss coverage ratio
0.0
%
 
5.3
%
 
0.0
%
 
9.0
%
 
25.6
%
 
0.0
%
 
7.8
%
Non-impaired loans
$
10,019

 
$
4,017,528

 
$
83,449

 
$
888,730

 
$
132,068

 
$
92,364

 
$
5,224,158

General allowance
$
25

 
$
42,096

 
$
401

 
$
11,680

 
$
2,270

 
$
657

 
$
57,129

Loss coverage ratio
0.2
%
 
1.0
%
 
0.5
%
 
1.3
%
 
1.7
%
 
0.7
%
 
1.1
%
Total loans
$
10,019

 
$
4,089,242

 
$
85,037

 
$
929,143

 
$
141,053

 
$
93,822

 
$
5,348,316

Total allowance for loan losses
$
25

 
$
45,921

 
$
401

 
$
15,298

 
$
4,568

 
$
657

 
$
66,870

Loss coverage ratio
0.2
%
 
1.1
%
 
0.5
%
 
1.6
%
 
3.2
%
 
0.7
%
 
1.3
%

 
As of December 31, 2013
 
Real Estate—
Residential
 
Real Estate—
Commercial
 
Real Estate—
Construction
 
Commercial
Business
 
Trade
Finance
 
Consumer
and Other
 
Total
 
(In thousands)
Impaired loans (gross carrying value)
$
—

 
$
67,544

 
$
1,625

 
$
40,106

 
$
5,692

 
$
1,302

 
$
116,269

Specific allowance
$
—

 
$
6,670

 
$
—

 
$
5,805

 
$
159

 
$
32

 
$
12,666

Loss coverage ratio
0.0
%
 
9.9
%
 
0.0
%
 
14.5
%
 
2.8
%
 
2.5
%
 
10.9
%
Non-impaired loans
$
10,039

 
$
3,753,619

 
$
71,231

 
$
908,987

 
$
118,993

 
$
97,205

 
$
4,960,074

General allowance
$
25

 
$
39,227

 
$
628

 
$
11,787

 
$
2,494

 
$
493

 
$
54,654

Loss coverage ratio
0.2
%
 
1.0
%
 
0.9
%
 
1.3
%
 
2.1
%
 
0.5
%
 
1.1
%
Total loans
$
10,039

 
$
3,821,163

 
$
72,856

 
$
949,093

 
$
124,685

 
$
98,507

 
$
5,076,343

Total allowance for loan losses
$
25

 
$
45,897

 
$
628

 
$
17,592

 
$
2,653

 
$
525

 
$
67,320

Loss coverage ratio
0.2
%
 
1.2
%
 
0.9
%
 
1.9
%
 
2.1
%
 
0.5
%
 
1.3
%
Troubled Debt Restructurings
The following table presents loans by class modified as TDRs that occurred during the three and six months ended June 30, 2014:
 
Three Months Ended June 30, 2014
 
Six Months Ended June 30, 2014
 
Number of
Loans 
 
Pre-
Modification
 
Post-
Modification 
 
Number of
Loans 
 
Pre-
Modification
 
Post-
Modification 
 
(Dollars in thousand)
Legacy Loans:
 
 
 
 
 
 
 
 
 
 
 
Real estate—commercial
 
 
 

 
 

 
 
 
 
 
 
Retail
1

 
$
523

 
$
514

 
1

 
$
523

 
$
514

Hotel & motel
—

 
—

 
—

 
—

 
—

 
—

Gas station & car wash
—

 
—

 
—

 
—

 
—

 
—

Mixed use
—

 
—

 
—

 
—

 
—

 
—

Industrial & warehouse
—

 
—

 
—

 
1

 
756

 
809

Other
—

 
—

 
—

 
1

 
240

 
238

Real estate - construction
—

 
—

 
—

 
—

 
—

 
—

Commercial business
3

 
2,542

 
2,107

 
7

 
5,892

 
5,875

Trade finance
—

 
—

 
—

 
1

 
92

 
800

Consumer and other
—

 
—

 
—

 
—

 
—

 
—

Subtotal
4

 
$
3,065

 
$
2,621

 
11

 
$
7,503

 
$
8,236

Acquired Loans:
 
 
 
 
 
 
 
 
 
 
 
Real estate—commercial
 
 
 

 
 

 
 
 
 
 
 
Retail
2

 
$
1,075

 
$
1,062

 
2

 
$
1,075

 
$
1,062

Hotel & motel
—

 
—

 
—

 
—

 
—

 
—

Gas station & car wash
1

 
794

 
756

 
1

 
794

 
756

Mixed use
—

 
—

 
—

 
—

 
—

 
—

Industrial & warehouse
—

 
—

 
—

 
—

 
—

 
—

Other
—

 
—

 
—

 
1

 
1,023

 
1,001

Real estate—construction
—

 
—

 
—

 
—

 
—

 
—

Commercial business
1

 
29

 
27

 
5

 
346

 
124

Trade finance
—

 
—

 
—

 
—

 
—

 
—

Consumer and other
—

 
$
—

 
$
—

 
1

 
$
195

 
$
187

Subtotal
4

 
$
1,898

 
$
1,845

 
10

 
$
3,433

 
$
3,130

 
8

 
$
4,963

 
$
4,466

 
21

 
$
10,936

 
$
11,366

A summary of TDRs on accrual and nonaccrual status by type of concession as of June 30, 2014 and December 31, 2013 is presented below:
 
As of June 30, 2014
 
TDRs on Accrual
 
TDRs on Nonaccrual
 
Total
 
Real Estate—
Commercial
 
Commercial
Business
 
Other
 
Total
 
Real Estate—
Commercial
 
Commercial
Business
 
Other
 
Total
 
 
(In thousands)
Payment concession
$
12,449

 
$
674

 
$
—

 
$
13,123

 
$
4,073

 
$
583

 
$
756

 
$
5,412

 
$
18,535

Maturity / Amortization concession
1,800

 
10,153

 
703

 
12,656

 
2,339

 
3,609

 
1,185

 
7,133

 
19,789

Rate concession
13,399

 
4,728

 
—

 
18,127

 
8,990

 
80

 
—

 
9,070

 
27,197

Principal forgiveness
—

 
—

 
—

 
—

 
—

 
42

 
—

 
42

 
42

 
$
27,648

 
$
15,555

 
$
703

 
$
43,906

 
$
15,402

 
$
4,314

 
$
1,941

 
$
21,657

 
$
65,563


 
As of December 31, 2013
 
TDRs on Accrual
 
TDRs on Nonaccrual
 
Total
 
Real Estate—
Commercial
 
Commercial
Business
 
Other
 
Total
 
Real Estate—
Commercial
 
Commercial
Business
 
Other
 
Total
 
 
(In thousands)
Payment concession
$
7,437

 
$
1,057

 
$
—

 
$
8,494

 
$
9,489

 
$
1,279

 
$
767

 
$
11,535

 
$
20,029

Maturity / Amortization concession
765

 
6,565

 
535

 
7,865

 
1,653

 
3,656

 
—

 
5,309

 
13,174

Rate concession
13,055

 
4,490

 
—

 
17,545

 
8,107

 
—

 
—

 
8,107

 
25,652

Principal forgiveness
—

 
—

 
—

 
—

 
—

 
49

 
—

 
49

 
49

 
$
21,257

 
$
12,112

 
$
535

 
$
33,904

 
$
19,249

 
$
4,984

 
$
767

 
$
25,000

 
$
58,904
Summary of Troubled Debt Restructurings with Subsequent Payment Default
The following table presents loans by class for TDRs that have been modified within the previous twelve months and have subsequently had a payment default during the three and six months ended June 30, 2014:


 
Three Months Ended
June 30, 2014
 
Six Months Ended
June 30, 2014
 
Number of Loans
 
Balance
 
Number of
Loans
 
 
Balance
 
 
(Dollars In thousands)
Legacy Loans:
 
 
 
 
 
 
 
Real estate—commercial
 
 
 
 
 
 
 
Retail
—

 
$
—

 
—

 
$
—

Gas station & car wash
—

 
—

 
—

 
—

Industrial & warehouse
—

 
—

 
—

 
—

Other
—

 
—

 
—

 
—

Commercial business
—

 
—

 
1

 
—

Subtotal
—

 
$
—

 
1

 
$
—

Acquired Loans:
 
 
 
 
 
 
 
Real estate—commercial
 

 
 

 
 
 
 
Retail
1

 
$
4

 
2

 
$
216

Gas station & car wash
—

 
—

 
—

 
—

Hotel & motel
—

 
—

 
—

 
—

Industrial & warehouse
—

 
—

 
—

 
—

Other
—

 
—

 
—

 
—

Commercial business
3

 
112

 
3

 
112

Subtotal
4

 
$
116

 
5

 
$
328

 
4

 
$
116

 
6

 
$
328
Covered Non-performing Assets
The covered nonperforming assets at June 30, 2014 and December 31, 2013 were as follows:
 
June 30, 2014
 
December 31, 2013
 
(In thousands)
Covered loans on nonaccrual status
$
1,610

 
$
236

Covered OREO
352

 
590

     Total covered nonperforming assets
$
1,962

 
$
826

 
 
 
 
Acquired covered loans
$
49,149

 
$
55,088