Loans, Allowance for Loan and Lease Losses, and Reserve for Off-Balance Sheet Credit Commitments (Tables)

6 Months Ended

Jun. 30, 2013

Loans, Allowance for Loan and Lease Losses, and Reserve for Off-Balance Sheet Credit Commitments

Summary of loans

	June 30,			December 31,
(in thousands)	2013			2012
Commercial	$	6,773,875		$	6,211,353
Commercial real estate mortgages	3,101,169			2,829,694
Residential mortgages	4,153,051			3,962,205
Real estate construction	217,808			222,780
Home equity loans and lines of credit	700,681			711,750
Installment	149,438			142,793
Lease financing	723,230			737,720
Loans and leases, excluding covered loans	15,819,252			14,818,295
Less: Allowance for loan and lease losses	(289,914		)	(277,888		)
Loans and leases, excluding covered loans, net	15,529,338			14,540,407
Covered loans	867,996			1,031,004
Less: Allowance for loan losses	(24,414		)	(44,781		)
Covered loans, net	843,582			986,223
Total loans and leases	$	16,687,248		$	15,849,299
Total loans and leases, net	$	16,372,920		$	15,526,630

Summary of major categories of covered loans

	June 30,			December 31,
(in thousands)	2013			2012
Commercial	$	8,675		$	10,561
Commercial real estate mortgages	789,521			931,758
Residential mortgages	5,560			5,652
Real estate construction	60,007			78,554
Home equity loans and lines of credit	3,673			3,790
Installment	560			689
Covered loans	867,996			1,031,004
Less: Allowance for loan losses	(24,414		)	(44,781		)
Covered loans, net	$	843,582		$	986,223

Schedule of information on covered loans and loss-sharing terms by acquired entity

(in thousands)	Imperial Capital Bank		1st Pacific Bank		Sun West Bank		Nevada Commerce Bank		Total
Carrying value of covered loans as of:
June 30, 2013	$	757,074	$	54,222	$	28,053	$	28,647	$	867,996
December 31, 2012	$	893,031	$	70,240	$	34,803	$	32,930	$	1,031,004
Expiration date of FDIC loss sharing:
Commercial (1)	12/31/2016		6/30/2015		6/30/2015		6/30/2016
Residential	12/31/2019		5/30/2020		5/30/2020		4/30/2021
Termination date of FDIC loss-sharing agreements:
Commercial (1)	12/19/2017		5/8/2018		5/29/2018		6/30/2019
Residential	12/31/2019		5/30/2020		5/30/2020		4/30/2021

(1)   The Company is subject to sharing 80% of its recoveries with the FDIC up to the termination dates of the commercial loss-sharing agreements.

Summary of accretable yield for acquired impaired loans

	For the six months ended June 30,
(in thousands)	2013			2012
Balance, beginning of period	$	295,813		$	436,374
Accretion	(32,740		)	(43,085		)
Reclassifications from (to) nonaccretable yield	15,978			(10,212		)
Disposals and other	(25,086		)	(36,944		)
Balance, end of period	$	253,965		$	346,133

Summary of allowance for loan and lease losses on non-covered loans

(in thousands)	Commercial (1)			Commercial Real Estate Mortgages			Residential Mortgages			Real Estate Construction			Home Equity Loans and Lines of Credit			Installment			Unallocated		Total
Three months ended June 30, 2013
Allowance for loan and lease losses:
Beginning balance	$	112,397		$	52,494		$	7,230		$	9,876		$	4,828		$	1,222		$	94,281	$	282,328
Provision for credit losses (2)	1,091			736			718			(4,837		)	185			(393		)	2,581		81
Charge-offs	(2,869		)	—			(1		)	(100		)	(35		)	(81		)	—		(3,086		)
Recoveries	5,724			1,034			38			2,782			410			603			—		10,591
Net (charge-offs) recoveries	2,855			1,034			37			2,682			375			522			—		7,505
Ending balance	$	116,343		$	54,264		$	7,985		$	7,721		$	5,388		$	1,351		$	96,862	$	289,914
Six months ended June 30, 2013
Allowance for loan and lease losses:
Beginning balance	$	104,156		$	48,240		$	10,499		$	13,130		$	7,243		$	1,847		$	92,773	$	277,888
Provision for credit losses (2)	7,159			4,987			(2,483		)	(10,757		)	(2,118		)	(1,164		)	4,089		(287		)
Charge-offs	(4,231		)	(45		)	(106		)	(100		)	(275		)	(352		)	—		(5,109		)
Recoveries	9,259			1,082			75			5,448			538			1,020			—		17,422
Net (charge-offs) recoveries	5,028			1,037			(31		)	5,348			263			668			—		12,313
Ending balance	$	116,343		$	54,264		$	7,985		$	7,721		$	5,388		$	1,351		$	96,862	$	289,914
Ending balance of allowance:
Individually evaluated for impairment	$	478		$	2,252		$	230		$	—		$	—		$	—		$	—	$	2,960
Collectively evaluated for impairment	115,865			52,012			7,755			7,721			5,388			1,351			96,862		286,954
Loans and leases, excluding covered loans
Ending balance of loans and leases:
Loans and leases, excluding
covered loans	$	7,497,105		$	3,101,169		$	4,153,051		$	217,808		$	700,681		$	149,438		$	—	$	15,819,252
Individually evaluated for impairment	34,915			41,932			7,979			30,446			3,257			—			—		118,529
Collectively evaluated for impairment	7,462,190			3,059,237			4,145,072			187,362			697,424			149,438			—		15,700,723

(1) Includes lease financing loans.

(2) Provision for credit losses in the allowance rollforward for the three months ended June 30, 2013 includes total transfers from the reserve for off-balance sheet credit commitments of $0.1 million. Provision for credit losses in the allowance rollforward for the six months ended June 30, 2013 includes total transfers to the reserve for off-balance sheet credit commitments of $0.3 million. There was no other provision for credit losses recognized for the three and six months ended June 30, 2013.

(in thousands)	Commercial (1)			Commercial Real Estate Mortgages			Residential Mortgages			Real Estate Construction			Home Equity Loans and Lines of Credit			Installment			Unallocated			Total
Three months ended June 30, 2012
Allowance for loan and lease losses:
Beginning balance	$	84,087		$	46,586		$	13,803		$	22,096		$	8,032		$	1,938		$	89,535		$	266,077
Provision for credit losses (2)	1,228			(51		)	(846		)	326			386			100			(427		)	716
Charge-offs	(1,302		)	(181		)	(749		)	(7,858		)	(846		)	(617		)	—			(11,553		)
Recoveries	9,394			1,294			206			3,019			38			343			—			14,294
Net (charge-offs) recoveries	8,092			1,113			(543		)	(4,839		)	(808		)	(274		)	—			2,741
Ending balance	$	93,407		$	47,648		$	12,414		$	17,583		$	7,610		$	1,764		$	89,108		$	269,534
Six months ended June 30, 2012
Allowance for loan and lease losses:
Beginning balance	$	82,965		$	45,967		$	14,029		$	23,347		$	8,024		$	1,959		$	86,266		$	262,557
Provision for credit losses (2)	(2,933		)	1,234			(578		)	(1,029		)	548			(338		)	2,842			(254		)
Charge-offs	(10,219		)	(873		)	(1,303		)	(9,459		)	(1,035		)	(826		)	—			(23,715		)
Recoveries	23,594			1,320			266			4,724			73			969			—			30,946
Net (charge-offs) recoveries	13,375			447			(1,037		)	(4,735		)	(962		)	143			—			7,231
Ending balance	$	93,407		$	47,648		$	12,414		$	17,583		$	7,610		$	1,764		$	89,108		$	269,534
Ending balance of allowance:
Individually evaluated for impairment	$	2,850		$	2,282		$	398		$	1,866		$	154		$	—		$	—		$	7,550
Collectively evaluated for impairment	90,557			45,366			12,016			15,717			7,456			1,764			89,108			261,984
Loans and leases, excluding covered loans
Ending balance of loans and leases:
Loans and leases, excluding
covered loans	$	6,086,947		$	2,424,333		$	3,822,630		$	301,829		$	741,270		$	130,200		$	—		$	13,507,209
Individually evaluated for impairment	43,144			45,491			13,634			66,529			4,434			550			—			173,782
Collectively evaluated for impairment	6,043,803			2,378,842			3,808,996			235,300			736,836			129,650			—			13,333,427

(1) Includes lease financing loans.

(2) Provision for credit losses in the allowance rollforward for the three months ended June 30, 2012 includes total provision expense of $1.0 million and total transfers to the reserve for off-balance sheet credit commitments of $0.3 million. Provision for credit losses for the six months ended June 30, 2012 includes total provision expense of $1.0 million and  total transfers to the reserve for off-balance sheet credit commitments of $1.3 million.

Summary of activity in the reserve for off-balance sheet credit commitments

	For the three months ended June 30,					For the six months ended June 30,
(in thousands)	2013			2012		2013		2012
Balance, beginning of period	$	25,205		$	24,067	$	24,837	$	23,097
Transfers (to) from allowance for loan and lease losses	(81		)	284		287		1,254
Balance, end of period	$	25,124		$	24,351	$	25,124	$	24,351

Schedule of impaired loans, excluding covered loans

			Unpaid				For the three months ended June 30, 2013				For the six months ended June 30, 2013
(in thousands)	Recorded Investment		Contractual Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
June 30, 2013
With no related allowance recorded:
Commercial	$	27,276	$	28,029	$	—	$	23,171	$	428	$	21,701	$	847
Commercial real estate mortgages	26,821		31,116		—		28,112		427		33,035		662
Residential mortgages:
Fixed	2,008		2,356		—		2,963		24		3,136		42
Variable	4,277		4,619		—		4,161		55		4,396		69
Total residential mortgages	6,285		6,975		—		7,124		79		7,532		111
Real estate construction:
Construction	16,265		21,064		—		17,799		228		18,453		558
Land	14,181		27,156		—		13,172		253		17,364		287
Total real estate construction	30,446		48,220		—		30,971		481		35,817		845
Home equity loans and lines of credit	3,257		4,310		—		2,698		34		2,986		34
Installment:
Consumer	—		—		—		—		—		150		—
Total installment	—		—		—		—		—		150		—
Total with no related allowance	$	94,085	$	118,650	$	—	$	92,076	$	1,449	$	101,221	$	2,499
With an allowance recorded:
Commercial	$	7,639	$	9,170	$	478	$	7,606	$	311	$	7,576	$	357
Commercial real estate mortgages	15,111		15,963		2,252		14,228		148		12,886		316
Residential mortgages:
Fixed	—		—		—		—		—		154		—
Variable	1,694		1,688		230		847		41		565		41
Total residential mortgages	1,694		1,688		230		847		41		719		41
Real estate construction:
Land	—		—		—		6,425		—		4,283		213
Total real estate construction	—		—		—		6,425		—		4,283		213
Home equity loans and lines of credit	—		—		—		—		—		300		—
Total with an allowance	$	24,444	$	26,821	$	2,960	$	29,106	$	500	$	25,764	$	927
Total impaired loans by type:
Commercial	$	34,915	$	37,199	$	478	$	30,777	$	739	$	29,277	$	1,204
Commercial real estate mortgages	41,932		47,079		2,252		42,340		575		45,921		978
Residential mortgages	7,979		8,663		230		7,971		120		8,251		152
Real estate construction	30,446		48,220		—		37,396		481		40,100		1,058
Home equity loans and lines of credit	3,257		4,310		—		2,698		34		3,286		34
Installment	—		—		—		—		—		150		—
Total impaired loans	$	118,529	$	145,471	$	2,960	$	121,182	$	1,949	$	126,985	$	3,426

(in thousands)	Recorded Investment		Unpaid Contractual Principal Balance		Related Allowance
December 31, 2012
With no related allowance recorded:
Commercial	$	18,761	$	24,135	$	—
Commercial real estate mortgages	42,882		49,110		—
Residential mortgages:
Fixed	3,482		3,757		—
Variable	4,865		5,437		—
Total residential mortgages	8,347		9,194		—
Real estate construction:
Construction	19,762		33,267		—
Land	25,748		41,016		—
Total real estate construction	45,510		74,283		—
Home equity loans and lines of credit	3,562		4,660		—
Installment:
Consumer	449		927		—
Total installment	449		927		—
Total with no related allowance	$	119,511	$	162,309	$	—
With an allowance recorded:
Commercial	$	7,516	$	8,038	$	952
Commercial real estate mortgages	10,203		10,783		1,326
Residential mortgages:
Fixed	463		507		9
Total residential mortgages	463		507		9
Home equity loans and lines of credit	899		965		116
Total with an allowance	$	19,081	$	20,293	$	2,403
Total impaired loans by type:
Commercial	$	26,277	$	32,173	$	952
Commercial real estate mortgages	53,085		59,893		1,326
Residential mortgages	8,810		9,701		9
Real estate construction	45,510		74,283		—
Home equity loans and lines of credit	4,461		5,625		116
Installment	449		927		—
Total impaired loans	$	138,592	$	182,602	$	2,403

			Unpaid				For the three months ended June 30, 2012				For the six months ended June 30, 2012
(in thousands)	Recorded Investment		Contractual Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
June 30, 2012
With no related allowance recorded:
Commercial	$	32,378	$	43,247	$	—	$	30,100	$	—	$	23,451	$	—
Commercial real estate mortgages	28,368		33,107		—		21,188		55		20,748		124
Residential mortgages:
Fixed	1,830		2,518		—		2,248		—		2,663		—
Variable	6,257		6,688		—		6,412		39		5,504		39
Total residential mortgages	8,087		9,206		—		8,660		39		8,167		39
Real estate construction:
Construction	38,828		52,209		—		29,937		126		29,103		242
Land	18,936		22,101		—		21,513		—		24,006		—
Total real estate construction	57,764		74,310		—		51,450		126		53,109		242
Home equity loans and lines of credit	3,207		4,245				4,621		—		4,861		—
Installment:
Consumer	550		927		—		550		—		586		—
Total installment	550		927		—		550		—		586		—
Lease financing	—		—		—		—		—		9		—
Total with no related allowance	$	130,354	$	165,042	$	—	$	116,569	$	220	$	110,931	$	405
With an allowance recorded:
Commercial	$	10,766	$	11,591	$	2,850	$	11,680	$	—	$	12,995	$	—
Commercial real estate mortgages	17,123		18,266		2,282		12,711		—		12,077		—
Residential mortgages:
Fixed	2,291		2,353		236		2,316		—		1,716		—
Variable	3,256		3,951		162		2,341		—		2,044		—
Total residential mortgages	5,547		6,304		398		4,657		—		3,760		—
Real estate construction:
Land	8,765		18,575		1,866		15,658		—		16,900		—
Total real estate construction	8,765		18,575		1,866		15,658		—		16,900		—
Home equity loans and lines of credit	1,227		1,421		154		1,086		—		1,155		—
Total with an allowance	$	43,428	$	56,157	$	7,550	$	45,792	$	—	$	46,887	$	—
Total impaired loans by type:
Commercial	$	43,144	$	54,838	$	2,850	$	41,780	$	—	$	36,446	$	—
Commercial real estate mortgages	45,491		51,373		2,282		33,899		55		32,825		124
Residential mortgages	13,634		15,510		398		13,317		39		11,927		39
Real estate construction	66,529		92,885		1,866		67,108		126		70,009		242
Home equity loans and lines of credit	4,434		5,666		154		5,707		—		6,016		—
Installment	550		927		—		550		—		586		—
Lease financing	—		—		—		—		—		9		—
Total impaired loans	$	173,782	$	221,199	$	7,550	$	162,361	$	220	$	157,818	$	405

Schedule of troubled debt restructured loans

(in thousands)	Number of Contracts	Pre-Modification Outstanding Principal		Period-End Outstanding Principal		Financial Effects (1)
Three months ended June 30, 2013
Commercial	6	$	6,956	$	6,926	$	—
Commercial real estate mortgages	1	547		547		—
Total troubled debt restructured loans	7	$	7,503	$	7,473	$	—
Three months ended June 30, 2012
Commercial	4	$	18,179	$	18,148	$	—
Commercial real estate mortgages	2	15,832		15,832		—
Real estate construction:
Construction	2	9,325		9,325		—
Total troubled debt restructured loans	8	$	43,336	$	43,305	$	—

(1) Financial effects are comprised of charge-offs and specific reserves recognized on TDR loans at modification date.

(in thousands)	Number of Contracts	Pre-Modification Outstanding Principal		Period-End Outstanding Principal		Financial Effects (1)
Six months ended June 30, 2013
Commercial	10	$	8,683	$	8,336	$	—
Commercial real estate mortgages	1	547		547
Home equity loans and lines of credit	1	345		—		—
Total troubled debt restructured loans	12	$	9,575	$	8,883	$	—
Six months ended June 30, 2012
Commercial	9	$	35,161	$	32,351	$	—
Commercial real estate mortgages	2	15,832		15,832		—
Residential mortgages:
Fixed	1	655		—		—
Real estate construction:
Construction	3	14,857		14,458		—
Total troubled debt restructured loans	15	$	66,505	$	62,641	$	—

(1) Financial effects are comprised of charge-offs and specific reserves recognized on TDR loans at modification date.

Schedule of troubled debt restructured loans that have subsequently defaulted

	For three months ended June 30, 2013					For six months ended June 30, 2013
(in thousands)	Number of Contracts	Period-End Outstanding Principal		Period-End Specific Reserve		Number of Contracts	Period-End Outstanding Principal		Period-End Specific Reserve
Commercial	2	$	427	$	—	4	$	1,487	$	—
Real estate construction:
Land	1	7,491		—		1	7,491		—
Home equity loans and lines of credit	—	—		—		1	141		—
Total loans that subsequently defaulted	3	$	7,918	$	—	6	$	9,119	$	—

	For three months ended June 30, 2012					For six months ended June 30, 2012
(in thousands)	Number of Contracts	Period-End Outstanding Principal		Period-End Specific Reserve		Number of Contracts	Period-End Outstanding Principal		Period-End Specific Reserve
Commercial	2	$	4,327	$	277	3	$	4,341	$	277
Real estate construction:
Land	—	—		—		2	1,371		—
Total loans that subsequently defaulted	2	$	4,327	$	277	5	$	5,712	$	277

Summary of past due loans, excluding covered loans, based upon the length of time the loans have been past due

(in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days and Accruing		Nonaccrual		Total Past Due and Nonaccrual Loans		Current		Total Loans and Leases
June 30, 2013
Commercial	$	2,080	$	10,565	$	—	$	11,654	$	24,299	$	6,749,576	$	6,773,875
Commercial real estate mortgages	2,523		1,771		—		22,433		26,727		3,074,442		3,101,169
Residential mortgages:
Fixed	—		508		379		4,402		5,289		1,420,487		1,425,776
Variable	—		2,396		—		6,178		8,574		2,718,701		2,727,275
Total residential mortgages	—		2,904		379		10,580		13,863		4,139,188		4,153,051
Real estate construction:
Construction	—		—		—		11,553		11,553		167,627		179,180
Land	—		—		—		14,165		14,165		24,463		38,628
Total real estate construction	—		—		—		25,718		25,718		192,090		217,808
Home equity loans and lines of credit	100		—		249		6,239		6,588		694,093		700,681
Installment:
Commercial	2		—		—		—		2		438		440
Consumer	188		24		—		24		236		148,762		148,998
Total installment	190		24		—		24		238		149,200		149,438
Lease financing	112		151		15		25		303		722,927		723,230
Total	$	5,005	$	15,415	$	643	$	76,673	$	97,736	$	15,721,516	$	15,819,252
December 31, 2012
Commercial	$	6,207	$	4,219	$	602	$	9,087	$	20,115	$	6,191,238	$	6,211,353
Commercial real estate mortgages	16,968		3,249		—		33,198		53,415		2,776,279		2,829,694
Residential mortgages:
Fixed	—		1,969		379		4,902		7,250		1,458,224		1,465,474
Variable	—		—		—		4,701		4,701		2,492,030		2,496,731
Total residential mortgages	—		1,969		379		9,603		11,951		3,950,254		3,962,205
Real estate construction:
Construction	—		—		—		15,067		15,067		150,548		165,615
Land	—		859		—		25,815		26,674		30,491		57,165
Total real estate construction	—		859		—		40,882		41,741		181,039		222,780
Home equity loans and lines of credit	3,407		480		—		6,424		10,311		701,439		711,750
Installment:
Commercial	—		—		—		—		—		437		437
Consumer	58		35		—		473		566		141,790		142,356
Total installment	58		35		—		473		566		142,227		142,793
Lease financing	2,633		2		—		120		2,755		734,965		737,720
Total	$	29,273	$	10,813	$	981	$	99,787	$	140,854	$	14,677,441	$	14,818,295

Summary of the loan and lease portfolio, excluding covered loans, by loan type and credit quality classification

	June 30, 2013						December 31, 2012
(in thousands)	Nonclassified		Classified		Total		Nonclassified		Classified		Total
Commercial	$	6,659,653	$	114,222	$	6,773,875	$	6,073,459	$	137,894	$	6,211,353
Commercial real estate mortgages	2,997,653		103,516		3,101,169		2,705,469		124,225		2,829,694
Residential mortgages:
Fixed	1,405,192		20,584		1,425,776		1,449,270		16,204		1,465,474
Variable	2,703,347		23,928		2,727,275		2,479,449		17,282		2,496,731
Total residential mortgages	4,108,539		44,512		4,153,051		3,928,719		33,486		3,962,205
Real estate construction:
Construction	137,033		42,147		179,180		119,189		46,426		165,615
Land	24,166		14,462		38,628		27,492		29,673		57,165
Total real estate construction	161,199		56,609		217,808		146,681		76,099		222,780
Home equity loans and lines of credit	671,809		28,872		700,681		685,011		26,739		711,750
Installment:
Commercial	440		—		440		437		—		437
Consumer	148,622		376		148,998		141,662		694		142,356
Total installment	149,062		376		149,438		142,099		694		142,793
Lease financing	720,080		3,150		723,230		733,803		3,917		737,720
Total	$	15,467,995	$	351,257	$	15,819,252	$	14,415,241	$	403,054	$	14,818,295

Summary of the allowance for loan losses on covered loans

	For the three months ended June 30,						For the six months ended June 30,
(in thousands)	2013			2012			2013			2012
Balance, beginning of period	$	42,354		$	61,471		$	44,781		$	64,565
Provision for losses	(11,927		)	13,293			(2,035		)	20,759
Reduction in allowance due to loan removals	(6,013		)	(31,617		)	(18,332		)	(42,177		)
Balance, end of period	$	24,414		$	43,147		$	24,414		$	43,147