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

6 Months Ended

Jun. 30, 2015

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

Summary of loans

	June 30,			December 31,
(in thousands)	2015			2014
Commercial	$	10,061,735		$	9,360,976
Commercial real estate mortgages	3,850,915			3,539,703
Residential mortgages	5,490,375			5,106,803
Real estate construction	877,838			710,224
Home equity loans and lines of credit	787,417			785,796
Installment	199,583			184,613
Lease financing	661,465			649,091
Loans and leases, excluding covered loans	21,929,328			20,337,206
Less: Allowance for loan and lease losses	(316,922		)	(310,149		)
Loans and leases, excluding covered loans, net	21,612,406			20,027,057
Covered loans	434,033			510,979
Less: Allowance for loan losses	(8,075		)	(8,608		)
Covered loans, net	425,958			502,371
Total loans and leases	$	22,363,361		$	20,848,185
Total loans and leases, net	$	22,038,364		$	20,529,428

Summary of major categories of covered loans

	June 30,			December 31,
(in thousands)	2015			2014
Commercial	$	1,630		$	1,969
Commercial real estate mortgages	409,404			481,689
Residential mortgages	3,653			4,455
Real estate construction	16,313			18,790
Home equity loans and lines of credit	2,846			3,820
Installment	187			256
Covered loans	434,033			510,979
Less: Allowance for loan losses	(8,075		)	(8,608		)
Covered loans, net	$	425,958		$	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
Covered loans as of:
June 30, 2015	$	388,301	$	21,146	$	7,210	$	17,376	$	434,033
December 31, 2014	456,177		23,895		9,353		21,554		510,979
As of June 30, 2015:
FDIC indemnification asset	$	31,536	$	1,222	$	262	$	1,779	$	34,799
FDIC clawback liability	—		13,289		2,711		289		16,289
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 six months ended June 30,
(in thousands)	2015			2014
Balance, beginning of period	$	168,469		$	219,018
Accretion	(19,235		)	(24,907		)
Reclassifications from nonaccretable difference	12,710			18,965
Disposals and other	(17,000		)	(16,198		)
Balance, end of period	$	144,944		$	196,878

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 June 30, 2015
Allowance for loan and lease losses:
Beginning balance	$	120,666		$	47,017	$	9,967		$	10,234		$	6,361		$	2,153		$	112,460		$	308,858
Charge-offs	(2,875		)	—		—			—			—			(231		)	—			(3,106		)
Recoveries	599			42		37			1,623			35			198			—			2,534
Net (charge-offs) recoveries	(2,276		)	42		37			1,623			35			(33		)	—			(572		)
(Reversal of) provision for credit losses	5,924			1,590		(344		)	(1,205		)	(992		)	88			4,939			10,000
Transfers to reserve for off-balance sheet credit commitments	—			—		—			—			—			—			(1,364		)	(1,364		)
Ending balance	$	124,314		$	48,649	$	9,660		$	10,652		$	5,404		$	2,208		$	116,035		$	316,922
Six months ended June 30, 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	(5,700		)	—		—			—			—			(508		)	—			(6,208		)
Recoveries	1,715			1,202		76			1,710			73			418			—			5,194
Net (charge-offs) recoveries	(3,985		)	1,202		76			1,710			73			(90		)	—			(1,014		)
(Reversal of) provision for credit losses	12,444			2,702		(712		)	(173		)	(1,278		)	70			(3,053		)	10,000
Transfers to reserve for off-balance sheet credit commitments	—			—		—			—			—			—			(2,213		)	(2,213		)
Ending balance	$	124,314		$	48,649	$	9,660		$	10,652		$	5,404		$	2,208		$	116,035		$	316,922
Ending balance of allowance:
Individually evaluated for impairment	$	1,299		$	263	$	33		$	—		$	—		$	—		$	—		$	1,595
Collectively evaluated for impairment	123,015			48,386		9,627			10,652			5,404			2,208			116,035			315,327
Loans and leases, excluding covered loans
Ending balance of loans and leases:
Loans and leases, excluding covered loans	$	10,723,200		$	3,850,915	$	5,490,375		$	877,838		$	787,417		$	199,583		$	—		$	21,929,328
Individually evaluated for impairment	8,791			22,993		11,912			5,816			933			—			—			50,445
Collectively evaluated for impairment	10,714,409			3,827,922		5,478,463			872,022			786,484			199,583			—			21,878,883

(1) Includes lease financing 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 June 30, 2014
Allowance for loan and lease losses:
Beginning balance	$	121,574		$	51,361		$	11,595		$	6,468		$	6,419		$	1,824		$	106,549		$	305,790
Charge-offs	(12,862		)	—			—			—			(149		)	(142		)	—			(13,153		)
Recoveries	7,503			27			190			687			43			1,068			—			9,518
Net (charge-offs) recoveries	(5,359		)	27			190			687			(106		)	926			—			(3,635		)
(Reversal of) provision for credit losses	711			(737		)	(1,489		)	36			262			(466		)	683			(1,000		)
Transfers from reserve for off-balance sheet credit commitments	9,353			—			—			—			—			—			768			10,121
Ending balance	$	126,279		$	50,651		$	10,296		$	7,191		$	6,575		$	2,284		$	108,000		$	311,276
Six months ended June 30, 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	(14,821		)	(5		)	(482		)	—			(165		)	(188		)	—			(15,661		)
Recoveries	9,235			127			225			5,075			202			1,332			—			16,196
Net (charge-offs) recoveries	(5,586		)	122			(257		)	5,075			37			1,144			—			535
(Reversal of) provision for credit losses	5,409			(149		)	(987		)	(4,235		)	(139		)	(702		)	(197		)	(1,000		)
Transfers from (to) reserve for off-balance sheet credit commitments	9,353			—			—			—			—			—			(196		)	9,157
Ending balance	$	126,279		$	50,651		$	10,296		$	7,191		$	6,575		$	2,284		$	108,000		$	311,276
Ending balance of allowance:
Individually evaluated for impairment	$	8,477		$	301		$	5		$	—		$	—		$	50		$	—		$	8,833
Collectively evaluated for impairment	117,802			50,350			10,291			7,191			6,575			2,234			108,000			302,443
Loans and leases, excluding covered loans
Ending balance of loans and leases:
Loans and leases, excluding covered loans	$	8,837,544		$	3,464,918		$	4,814,435		$	457,557		$	716,816		$	183,518		$	—		$	18,474,788
Individually evaluated for impairment	29,231			33,456			10,596			12,846			3,436			50			—			89,615
Collectively evaluated for impairment	8,808,313			3,431,462			4,803,839			444,711			713,380			183,468			—			18,385,173

(1) Includes lease financing loans.

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)	2015		2014			2015		2014
Balance, beginning of period	$	28,660	$	34,908		$	27,811	$	33,944
Transfers from (to) allowance for loan and lease losses	1,364		(10,121		)	2,213		(9,157		)
Balance, end of period	$	30,024	$	24,787		$	30,024	$	24,787

Schedule of impaired loans, excluding covered loans

			Unpaid				For the three months ended June 30, 2015				For the six months ended June 30, 2015
(in thousands)	Recorded Investment		Contractual Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
June 30, 2015
With no related allowance recorded:
Commercial	$	2,453	$	8,364	$	—	$	1,951	$	18	$	4,265	$	23
Commercial real estate mortgages	17,974		19,067		—		17,906		197		18,557		405
Residential mortgages:
Fixed	8,000		8,271		—		7,860		16		7,825		26
Variable	—		—		—		—		—		75		—
Total residential mortgages	8,000		8,271		—		7,860		16		7,900		26
Real estate construction:
Land	5,816		6,900		—		7,398		52		7,135		114
Total real estate construction	5,816		6,900		—		7,398		52		7,135		114
Home equity loans and lines of credit	933		2,042		—		934		—		1,379		—
Total with no related allowance	$	35,176	$	44,644	$	—	$	36,049	$	283	$	39,236	$	568
With an allowance recorded:
Commercial	$	6,338	$	6,431	$	1,299	$	6,245	$	26	$	6,320	$	43
Commercial real estate mortgages	5,019		5,343		263		5,030		71		5,081		142
Residential mortgages:
Variable	3,912		3,904		33		3,924		26		3,935		52
Total residential mortgages	3,912		3,904		33		3,924		26		3,935		52
Total with an allowance	$	15,269	$	15,678	$	1,595	$	15,199	$	123	$	15,336	$	237
Total impaired loans by type:
Commercial	$	8,791	$	14,795	$	1,299	$	8,196	$	44	$	10,585	$	66
Commercial real estate mortgages	22,993		24,410		263		22,936		268		23,638		547
Residential mortgages	11,912		12,175		33		11,784		42		11,835		78
Real estate construction	5,816		6,900		—		7,398		52		7,135		114
Home equity loans and lines of credit	933		2,042		—		934		—		1,379		—
Total impaired loans	$	50,445	$	60,322	$	1,595	$	51,248	$	406	$	54,572	$	805

(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 June 30, 2014				For the six months ended June 30, 2014
(in thousands)	Recorded Investment		Contractual Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
June 30, 2014
With no related allowance recorded:
Commercial	$	6,980	$	7,713	$	—	$	9,118	$	30	$	11,986	$	167
Commercial real estate mortgages	28,233		30,829		—		32,398		246		32,522		684
Residential mortgages:
Fixed	4,796		5,012		—		4,842		10		3,940		20
Variable	1,799		1,922		—		2,408		14		3,406		28
Total residential mortgages	6,595		6,934		—		7,250		24		7,346		48
Real estate construction:
Construction	—		—		—		2,742		21		3,656		76
Land	12,846		26,520		—		13,075		35		13,254		69
Total real estate construction	12,846		26,520		—		15,817		56		16,910		145
Home equity loans and lines of credit	3,436		4,505		—		3,442		—		3,071		—
Installment:
Consumer	—		—		—		—		—		5		—
Total installment	—		—		—		—		—		5		—
Total with no related allowance	$	58,090	$	76,501	$	—	$	68,025	$	356	$	71,840	$	1,044
With an allowance recorded:
Commercial	$	22,251	$	28,454	$	8,477	$	19,839	$	—	$	17,938	$	—
Commercial real estate mortgages	5,223		5,586		301		5,293		74		5,323		118
Residential mortgages:
Variable	4,001		3,993		5		2,001		11		1,892		11
Total residential mortgages	4,001		3,993		5		2,001		11		1,892		11
Installment:
Consumer	50		50		50		25		1		17		1
Total installment	50		50		50		25		1		17		1
Total with an allowance	$	31,525	$	38,083	$	8,833	$	27,158	$	86	$	25,170	$	130
Total impaired loans by type:
Commercial	$	29,231	$	36,167	$	8,477	$	28,957	$	30	$	29,924	$	167
Commercial real estate mortgages	33,456		36,415		301		37,691		320		37,845		802
Residential mortgages	10,596		10,927		5		9,251		35		9,238		59
Real estate construction	12,846		26,520		—		15,817		56		16,910		145
Home equity loans and lines of credit	3,436		4,505		—		3,442		—		3,071		—
Installment	50		50		50		25		1		22		1
Total impaired loans	$	89,615	$	114,584	$	8,833	$	95,183	$	442	$	97,010	$	1,174

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, 2015
Commercial	1	$	631	$	583	$	—
Commercial real estate mortgages	1	418		418		—
Residential mortgages:
Fixed	1	302		301		—
Total troubled debt restructured loans	3	$	1,351	$	1,302	$	—
Three months ended June 30, 2014
Residential mortgages:
Variable	1	$	4,000	$	3,993	$	5
Installment:
Consumer	1	50		50		50
Total troubled debt restructured loans	2	$	4,050	$	4,043	$	55

(1) Financial effects are comprised of charge-offs and specific reserves recognized on troubled debt restructured (“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, 2015
Commercial	1	$	631	$	583	$	—
Commercial real estate mortgages	1	418		418		—
Residential mortgages:
Fixed	1	302		301		—
Home equity loans and lines of credit	1	87		83		—
Total troubled debt restructured loans	4	$	1,438	$	1,385	$	—
Six months ended June 30, 2014
Commercial	2	$	4,098	$	3,967	$	—
Residential mortgages:
Variable	2	4,676		4,669		5
Installment:
Consumer	1	50		50		50
Total troubled debt restructured loans	5	$	8,824	$	8,686	$	55

(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, 2015					For six months ended June 30, 2015
(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 real estate mortgages	—	$	—	$	—	1	$	69	$	—

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, 2015
Commercial	$	6,493	$	4,498	$	32	$	8,337	$	19,360	$	10,042,375	$	10,061,735
Commercial real estate mortgages	3,177		1,882		—		2,726		7,785		3,843,130		3,850,915
Residential mortgages:
Fixed	—		519		—		10,500		11,019		1,496,702		1,507,721
Variable	—		1,050		2,172		588		3,810		3,978,844		3,982,654
Total residential mortgages	—		1,569		2,172		11,088		14,829		5,475,546		5,490,375
Real estate construction:
Construction	—		—		—		—		—		850,560		850,560
Land	—		—		—		3,460		3,460		23,818		27,278
Total real estate construction	—		—		—		3,460		3,460		874,378		877,838
Home equity loans and lines of credit	—		240		50		3,371		3,661		783,756		787,417
Installment:
Commercial	—		—		—		—		—		236		236
Consumer	229		145		480		29		883		198,464		199,347
Total installment	229		145		480		29		883		198,700		199,583
Lease financing	—		21		—		4		25		661,440		661,465
Total	$	9,899	$	8,355	$	2,734	$	29,015	$	50,003	$	21,879,325	$	21,929,328

(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
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

	June 30, 2015						December 31, 2014
(in thousands)	Nonclassified		Classified		Total		Nonclassified		Classified		Total
Commercial	$	9,986,445	$	75,290	$	10,061,735	$	9,304,636	$	56,340	$	9,360,976
Commercial real estate mortgages	3,793,933		56,982		3,850,915		3,511,229		28,474		3,539,703
Residential mortgages:
Fixed	1,486,910		20,811		1,507,721		1,375,175		26,777		1,401,952
Variable	3,953,181		29,473		3,982,654		3,675,723		29,128		3,704,851
Total residential mortgages	5,440,091		50,284		5,490,375		5,050,898		55,905		5,106,803
Real estate construction:
Construction	850,560		—		850,560		679,744		7,246		686,990
Land	21,471		5,807		27,278		16,636		6,598		23,234
Total real estate construction	872,031		5,807		877,838		696,380		13,844		710,224
Home equity loans and lines of credit	759,062		28,355		787,417		754,694		31,102		785,796
Installment:
Commercial	236		—		236		298		—		298
Consumer	198,651		696		199,347		183,190		1,125		184,315
Total installment	198,887		696		199,583		183,488		1,125		184,613
Lease financing	658,933		2,532		661,465		645,049		4,042		649,091
Total	$	21,709,382	$	219,946	$	21,929,328	$	20,146,374	$	190,832	$	20,337,206

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)	2015			2014			2015			2014
Balance, beginning of period	$	9,752		$	18,439		$	8,608		$	15,922
(Reversal of) provision for losses	1,091			(1,461		)	1,588			3,194
Change in allowance due to loan removals	(2,768		)	(7,875		)	(2,121		)	(10,013		)
Balance, end of period	$	8,075		$	9,103		$	8,075		$	9,103