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

3 Months Ended

Mar. 31, 2015

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

Summary of loans

	March 31,			December 31,
(in thousands)	2015			2014
Commercial	$	9,455,621		$	9,360,976
Commercial real estate mortgages	3,737,137			3,539,703
Residential mortgages	5,299,947			5,106,803
Real estate construction	794,274			710,224
Home equity loans and lines of credit	791,731			785,796
Installment	186,076			184,613
Lease financing	645,569			649,091
Loans and leases, excluding covered loans	20,910,355			20,337,206
Less: Allowance for loan and lease losses	(308,858		)	(310,149		)
Loans and leases, excluding covered loans, net	20,601,497			20,027,057
Covered loans	480,236			510,979
Less: Allowance for loan losses	(9,752		)	(8,608		)
Covered loans, net	470,484			502,371
Total loans and leases	$	21,390,591		$	20,848,185
Total loans and leases, net	$	21,071,981		$	20,529,428

Summary of major categories of covered loans

	March 31,			December 31,
(in thousands)	2015			2014
Commercial	$	2,153		$	1,969
Commercial real estate mortgages	453,647			481,689
Residential mortgages	3,715			4,455
Real estate construction	16,813			18,790
Home equity loans and lines of credit	3,655			3,820
Installment	253			256
Covered loans	480,236			510,979
Less: Allowance for loan losses	(9,752		)	(8,608		)
Covered loans, net	$	470,484		$	502,371

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:
March 31, 2015	$	429,570	$	22,787	$	8,497	$	19,382	$	480,236
December 31, 2014	456,177		23,895		9,353		21,554		510,979
As of March 31, 2015:
FDIC indemnification asset	$	38,935	$	1,596	$	276	$	2,449	$	43,256
FDIC clawback liability	—		13,159		2,599		205		15,963
Expiration date of FDIC loss sharing:
Commercial (1)	12/31/2016		6/30/2015		6/30/2015		6/30/2016
Residential	12/31/2019		5/31/2020		5/31/2020		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		5/31/2020		5/31/2020		4/30/2021

(1) The Company is subject to sharing 80 percent of its recoveries with the FDIC up to the last day of the quarter in which the termination dates of the commercial loss-sharing agreements occur.

Summary of accretable yield for acquired impaired loans

	For the three months ended March 31,
(in thousands)	2015			2014
Balance, beginning of period	$	168,469		$	219,018
Accretion	(9,876		)	(12,528		)
Reclassifications from nonaccretable difference	4,816			4,305
Disposals and other	(8,853		)	(8,704		)
Balance, end of period	$	154,556		$	202,091

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			Qualitative			Total
Three months ended March 31, 2015
Allowance for loan and lease losses:
Beginning balance	$	115,855		$	44,745		$	10,296		$	9,115		$	6,609		$	2,228		$	121,301		$	310,149
Charge-offs	(2,825		)	—			—			—			—			(277		)	—			(3,102		)
Recoveries	1,116			1,160			39			87			38			220			—			2,660
Net (charge-offs) recoveries	(1,709		)	1,160			39			87			38			(57		)	—			(442		)
(Reversal of) provision for credit losses	6,520			1,112			(368		)	1,032			(286		)	(18		)	(7,992		)	—
Transfers to reserve for off-balance sheet credit commitments	—			—			—			—			—			—			(849		)	(849		)
Ending balance	$	120,666		$	47,017		$	9,967		$	10,234		$	6,361		$	2,153		$	112,460		$	308,858
Ending balance of allowance:
Individually evaluated for impairment	$	471		$	273		$	40		$	—		$	—		$	—		$	—		$	784
Collectively evaluated for impairment	120,195			46,744			9,927			10,234			6,361			2,153			112,460			308,074
Loans and leases, excluding covered loans
Ending balance of loans and leases:
Loans and leases, excluding covered loans	$	10,101,190		$	3,737,137		$	5,299,947		$	794,274		$	791,731		$	186,076		$	—		$	20,910,355
Individually evaluated for impairment	7,600			22,879			11,655			8,979			935			—			—			52,048
Collectively evaluated for impairment	10,093,590			3,714,258			5,288,292			785,295			790,796			186,076			—			20,858,307
Three months ended March 31, 2014
Allowance for loan and lease losses:
Beginning balance	$	117,103		$	50,678		$	11,540		$	6,351		$	6,677		$	1,842		$	108,393		$	302,584
Charge-offs	(1,959		)	(5		)	(482		)	—			(16		)	(46		)	—			(2,508		)
Recoveries	1,732			100			35			4,388			159			264			—			6,678
Net (charge-offs) recoveries	(227		)	95			(447		)	4,388			143			218			—			4,170
(Reversal of) provision for credit losses	4,698			588			502			(4,271		)	(401		)	(236		)	(880		)	—
Transfers to reserve for off-balance sheet credit commitments	—			—			—			—			—			—			(964		)	(964		)
Ending balance	$	121,574		$	51,361		$	11,595		$	6,468		$	6,419		$	1,824		$	106,549		$	305,790
Ending balance of allowance:
Individually evaluated for impairment	$	2,557		$	300		$	—		$	—		$	—		$	—		$	—		$	2,857
Collectively evaluated for impairment	119,017			51,061			11,595			6,468			6,419			1,824			106,549			302,933
Loans and leases, excluding covered loans
Ending balance of loans and leases:
Loans and leases, excluding covered loans	$	8,557,041		$	3,280,868		$	4,682,055		$	389,188		$	691,338		$	150,895		$	—		$	17,751,385
Individually evaluated for impairment	28,683			41,924			7,904			18,788			3,447			—			—			100,746
Collectively evaluated for impairment	8,528,358			3,238,944			4,674,151			370,400			687,891			150,895			—			17,650,639

(1) Includes lease financing loans.

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

	For the three months ended March 31,
(in thousands)	2015		2014
Balance, beginning of period	$	27,811	$	33,944
Transfers from allowance for loan and lease losses	849		964
Balance, end of period	$	28,660	$	34,908

Schedule of impaired loans, excluding covered loans

			Unpaid				For the three months ended March 31, 2015
(in thousands)	Recorded Investment		Contractual Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
March 31, 2015
With no related allowance recorded:
Commercial	$	1,449	$	1,637	$	—	$	5,172	$	5
Commercial real estate mortgages	17,838		18,762		—		18,848		208
Residential mortgages:
Fixed	7,720		7,980		—		7,738		10
Variable	—		—		—		112		—
Total residential mortgages	7,720		7,980		—		7,850		10
Real estate construction:
Land	8,979		11,119		—		7,794		62
Total real estate construction	8,979		11,119		—		7,794		62
Home equity loans and lines of credit	935		2,043		—		1,602		—
Total with no related allowance	$	36,921	$	41,541	$	—	$	41,266	$	285
With an allowance recorded:
Commercial	$	6,151	$	11,425	$	471	$	6,310	$	17
Commercial real estate mortgages	5,041		5,375		273		5,113		71
Residential mortgages:
Variable	3,935		3,926		40		3,946		26
Total residential mortgages	3,935		3,926		40		3,946		26
Total with an allowance	$	15,127	$	20,726	$	784	$	15,369	$	114
Total impaired loans by type:
Commercial	$	7,600	$	13,062	$	471	$	11,482	$	22
Commercial real estate mortgages	22,879		24,137		273		23,961		279
Residential mortgages	11,655		11,906		40		11,796		36
Real estate construction	8,979		11,119		—		7,794		62
Home equity loans and lines of credit	935		2,043		—		1,602		—
Total impaired loans	$	52,048	$	62,267	$	784	$	56,635	$	399

(in thousands)	Recorded Investment		Unpaid Contractual Principal Balance		Related Allowance
December 31, 2014
With no related allowance recorded:
Commercial	$	8,894	$	9,182	$	—
Commercial real estate mortgages	19,858		22,416		—
Residential mortgages:
Fixed	7,756		7,994		—
Variable	224		262		—
Total residential mortgages	7,980		8,256		—
Real estate construction:
Land	6,609		8,758		—
Total real estate construction	6,609		8,758		—
Home equity loans and lines of credit	2,270		3,375		—
Total with no related allowance	$	45,611	$	51,987	$	—
With an allowance recorded:
Commercial	$	6,470	$	8,878	$	399
Commercial real estate mortgages	5,184		5,526		281
Residential mortgages:
Variable	3,957		3,948		48
Total residential mortgages	3,957		3,948		48
Total with an allowance	$	15,611	$	18,352	$	728
Total impaired loans by type:
Commercial	$	15,364	$	18,060	$	399
Commercial real estate mortgages	25,042		27,942		281
Residential mortgages	11,937		12,204		48
Real estate construction	6,609		8,758		—
Home equity loans and lines of credit	2,270		3,375		—
Total impaired loans	$	61,222	$	70,339	$	728

			Unpaid				For the three months ended March 31, 2014
(in thousands)	Recorded Investment		Contractual Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
March 31, 2014
With no related allowance recorded:
Commercial	$	11,257	$	11,920	$	—	$	14,489	$	137
Commercial real estate mortgages	36,562		39,660		—		34,666		438
Residential mortgages:
Fixed	4,888		5,051		—		3,512		10
Variable	3,016		3,618		—		4,209		14
Total residential mortgages	7,904		8,669		—		7,721		24
Real estate construction:
Construction	5,484		6,766		—		5,484		55
Land	13,304		26,800		—		13,458		34
Total real estate construction	18,788		33,566		—		18,942		89
Home equity loans and lines of credit	3,447		4,505		—		2,888		—
Installment:
Consumer	—		—		—		8		—
Total installment	—		—		—		8		—
Total with no related allowance	$	77,958	$	98,320	$	—	$	78,714	$	688
With an allowance recorded:
Commercial	$	17,426	$	19,663	$	2,557	$	15,781	$	—
Commercial real estate mortgages	5,362		5,734		300		5,373		44
Residential mortgages:
Variable	—		—		—		837		—
Total residential mortgages	—		—		—		837		—
Total with an allowance	$	22,788	$	25,397	$	2,857	$	21,991	$	44
Total impaired loans by type:
Commercial	$	28,683	$	31,583	$	2,557	$	30,270	$	137
Commercial real estate mortgages	41,924		45,394		300		40,039		482
Residential mortgages	7,904		8,669		—		8,558		24
Real estate construction	18,788		33,566		—		18,942		89
Home equity loans and lines of credit	3,447		4,505		—		2,888		—
Installment	—		—		—		8		—
Total impaired loans	$	100,746	$	123,717	$	2,857	$	100,705	$	732

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 March 31, 2015
Home equity loans and lines of credit	1	$	87	$	85	$	—
Total troubled debt restructured loans	1	$	87	$	85	$	—
Three months ended March 31, 2014
Commercial	2	$	4,098	$	4,071	$	—
Residential mortgages:
Variable	1	676		676		—
Total troubled debt restructured loans	3	$	4,774	$	4,747	$	—

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

Schedule of troubled debt restructured loans that have subsequently defaulted

	For three months ended March 31, 2015
(in thousands)	Number of Contracts	Period-End Outstanding Principal		Period-End Specific Reserve
Commercial real estate mortgages	1	$	73	$	—

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
March 31, 2015
Commercial	$	4,130	$	5,586	$	—	$	8,192	$	17,908	$	9,437,713	$	9,455,621
Commercial real estate mortgages	185		—		—		2,901		3,086		3,734,051		3,737,137
Residential mortgages:
Fixed	—		618		379		10,793		11,790		1,466,330		1,478,120
Variable	—		3,985		—		1,339		5,324		3,816,503		3,821,827
Total residential mortgages	—		4,603		379		12,132		17,114		5,282,833		5,299,947
Real estate construction:
Construction	—		—		—		—		—		766,840		766,840
Land	—		—		—		6,598		6,598		20,836		27,434
Total real estate construction	—		—		—		6,598		6,598		787,676		794,274
Home equity loans and lines of credit	—		350		240		3,507		4,097		787,634		791,731
Installment:
Commercial	—		—		—		—		—		249		249
Consumer	206		52		409		39		706		185,121		185,827
Total installment	206		52		409		39		706		185,370		186,076
Lease financing	703		—		—		7		710		644,859		645,569
Total	$	5,224	$	10,591	$	1,028	$	33,376	$	50,219	$	20,860,136	$	20,910,355
December 31, 2014
Commercial	$	8,462	$	325	$	148	$	15,096	$	24,031	$	9,336,945	$	9,360,976
Commercial real estate mortgages	693		—		—		3,575		4,268		3,535,435		3,539,703
Residential mortgages:
Fixed	—		309		921		10,365		11,595		1,390,357		1,401,952
Variable	—		1,165		—		1,578		2,743		3,702,108		3,704,851
Total residential mortgages	—		1,474		921		11,943		14,338		5,092,465		5,106,803
Real estate construction:
Construction	—		—		—		—		—		686,990		686,990
Land	—		—		—		6,598		6,598		16,636		23,234
Total real estate construction	—		—		—		6,598		6,598		703,626		710,224
Home equity loans and lines of credit	—		39		100		4,864		5,003		780,793		785,796
Installment:
Commercial	—		—		—		—		—		298		298
Consumer	324		113		346		84		867		183,448		184,315
Total installment	324		113		346		84		867		183,746		184,613
Lease financing	321		152		—		7		480		648,611		649,091
Total	$	9,800	$	2,103	$	1,515	$	42,167	$	55,585	$	20,281,621	$	20,337,206

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

	March 31, 2015						December 31, 2014
(in thousands)	Nonclassified		Classified		Total		Nonclassified		Classified		Total
Commercial	$	9,383,150	$	72,471	$	9,455,621	$	9,304,636	$	56,340	$	9,360,976
Commercial real estate mortgages	3,697,901		39,236		3,737,137		3,511,229		28,474		3,539,703
Residential mortgages:
Fixed	1,456,060		22,060		1,478,120		1,375,175		26,777		1,401,952
Variable	3,792,414		29,413		3,821,827		3,675,723		29,128		3,704,851
Total residential mortgages	5,248,474		51,473		5,299,947		5,050,898		55,905		5,106,803
Real estate construction:
Construction	763,016		3,824		766,840		679,744		7,246		686,990
Land	18,475		8,959		27,434		16,636		6,598		23,234
Total real estate construction	781,491		12,783		794,274		696,380		13,844		710,224
Home equity loans and lines of credit	763,760		27,971		791,731		754,694		31,102		785,796
Installment:
Commercial	249		—		249		298		—		298
Consumer	185,152		675		185,827		183,190		1,125		184,315
Total installment	185,401		675		186,076		183,488		1,125		184,613
Lease financing	641,343		4,226		645,569		645,049		4,042		649,091
Total	$	20,701,520	$	208,835	$	20,910,355	$	20,146,374	$	190,832	$	20,337,206

Summary of the allowance for loan losses on covered loans

	For the three months ended March 31,
(in thousands)	2015		2014
Balance, beginning of period	$	8,608	$	15,922
Provision for losses	497		4,655
Change in allowance due to loan removals	647		(2,138		)
Balance, end of period	$	9,752	$	18,439