4. Loans

Total noncovered and covered loans outstanding as of March 31, 2013, December 31, 2012 and March 31, 2012 were as follows:



		March 31, 2013			December 31, 2012			March 31, 2012
Commercial		$	5,888,337		$	5,866,489		$	5,220,051
Residential mortgage		451,522			445,211			428,950
Installment		1,322,795			1,328,258			1,259,930
Home equity		812,458			806,078			739,548
Credit cards		140,721			146,387			140,618
Leases		164,137			139,236			74,112
	Total noncovered loans (a)	8,779,970			8,731,659			7,863,209
Allowance for noncovered loan losses		(98,843		)	(98,942		)	(103,849		)
	Net noncovered loans	8,681,127			8,632,717			7,759,360
Covered loans (b)		896,832			1,019,125			1,378,150
Allowance for covered loan losses		(47,945		)	(43,255		)	(41,070		)
	Net covered loans	848,887			975,870			1,337,080
	Net loans	$	9,530,014		$	9,608,587		$	9,096,440

(a) Includes acquired, noncovered loans of $54.1 million, $54.2 million, $99.2 million as of March 31, 2013, December 31, 2012 and March 31, 2012, respectively.

(b) Includes loss share receivable of $95.6 million, $113.7 million and $171.1 million as of March 31, 2013, December 31, 2012 and March 31, 2012, respectively.

Originated loans are presented net of deferred loan origination fees and costs, which amounted to $6.8 million, $6.5 million and $6.6 million at March 31, 2013, December 31, 2012 and March 31, 2012, respectively. Acquired loans, including covered loans, are recorded at fair value as of the date of purchase with no allowance for loan loss. In 2010, the Bank acquired loans of $275.6 million in its acquisition of the First Bank branches, and $177.8 million and $1.8 billion in conjunction with the FDIC-assisted acquisitions of George Washington and Midwest, respectively. The loans that were acquired in these FDIC-assisted transactions are covered by loss sharing agreements, which afford the Bank significant loss protection. Loans covered under loss sharing agreements, including the amounts of expected reimbursements from the FDIC under these agreements, are reported as covered loans in the accompanying consolidated balance sheets.

Changes in the loss share receivable associated with covered loans for the three months ended March 31, 2013 and 2012, respectively, were as follows:



	Three Months Ended
	March 31, 2013			March 31, 2012
Balance at beginning of period	$	113,734		$	205,664
Accretion	(8,104		)	(9,657		)
Increase due to impairment	5,539			4,899
FDIC reimbursement	(10,549		)	(27,430		)
Covered loans paid in full	(5,027		)	(2,340		)
Balance at end of the period	$	95,593		$	171,136

Acquired Loans

The Corporation evaluates acquired loans for impairment in accordance with the provisions of ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality ("ASC 310-30"). Acquired loans are considered impaired if there is evidence of credit deterioration since origination and if it is probable that not all contractually required payments will be collected. Acquired impaired loans are not classified as nonperforming assets as the loans are considered to be performing under ASC 310-30.

All loans acquired in the First Bank acquisition were performing as of the date of acquisition. The difference between the fair value and the outstanding principal balance of the First Bank acquired loans is being accreted to interest income over the remaining term of the loans.

The Corporation has elected to account for all loans acquired in the George Washington and Midwest acquisitions under ASC 310-30 ("Acquired Impaired Loans") except for $162.6 million of acquired loans with revolving privileges, which are outside the scope of this guidance and which are being accounted for in accordance with ASC 310 ("Acquired Non-Impaired Loans"). The outstanding balance, including contractual principal, interest, fees and penalties, of all covered loans accounted for in accordance with ASC 310-30 was $1.0 billion, $1.2 billion, and $1.5 billion as of March 31, 2013, December 31, 2012 and March 31, 2012, respectively.

Over the life of the loans acquired and considered to be impaired under ASC 310-30, the Corporation evaluates the remaining contractual required payments receivable and estimates cash flows expected to be collected, considering the impact of prepayments. The excess of an acquired impaired loan's contractually required payments over the amount of its undiscounted cash flows expected to be collected is referred to as the nonaccretable difference. The nonaccretable difference, which is neither accreted into income nor recorded on our consolidated balance sheet, reflects estimated future credit losses and uncollectible contractual interest expected to be incurred over the life of the acquired impaired loan. The excess of cash flows expected to be collected over the carrying amount of the acquired impaired loans is referred to as the accretable yield. This amount is accreted into interest income over the remaining life of the acquired impaired loans or pools using the level yield method. The accretable yield is affected by changes in interest rate indices for variable rate loans, changes in prepayment speed assumptions and changes in expected principal and interest payments over the estimated lives of the acquired impaired loans.

The contractually required payments receivable represents the total undiscounted amount of all uncollected principal and interest payments. Contractually required payments receivable may increase or decrease for a variety of reasons, for example, when the contractual terms of the loan agreement are modified, when interest rates on variable rate loans change, or when principal and/or interest payments are received.

Cash flows expected to be collected on acquired impaired loans are estimated by incorporating several key assumptions similar to the initial estimate of fair value. These key assumptions include probability of default, loss given default, and the amount of actual prepayments after the acquisition dates. Prepayments affect the estimated life of loans and could change the amount of interest income, and possibly principal, expected to be collected. In reforecasting future estimated cash flows, credit loss expectations are adjusted as necessary. These adjustments are based, in part, on actual loss severities recognized for each loan type, as well as changes in the probability of default. For periods in which estimated cash flows are not reforecasted, the prior reporting period's estimated cash flows are adjusted to reflect the actual cash received and credit events that transpired during the current reporting period.

Changes in the carrying amount and accretable yield for Acquired Impaired Loans were as follows for the three months ended March 31, 2013 and 2012:



	Three Months Ended
	March 31, 2013						March 31, 2012
	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
Balance at beginning of period	$	113,288		$	762,386		$	176,736		$	1,128,978
Accretion	(19,514		)	19,514			(26,442		)	26,442
Net reclassifications from non-accretable to accretable	10,569			—			11,813			—
Payments received, net	—			(125,230		)	—			(111,901		)
Disposals	(2,213		)	—			(815		)	—
Balance at end of period	$	102,130		$	656,670		$	161,292		$	1,043,519

A reconciliation of the contractual required payments receivable to the carrying amount of Acquired Impaired Loans as of March 31, 2013 and 2012 is as follows:



	March 31, 2013			March 31, 2012
Contractual required payments receivable	$	1,040,245		$	1,515,024
Nonaccretable difference	(281,445		)	(310,213		)
Expected cash flows	758,800			1,204,811
Accretable yield	(102,130		)	(161,292		)
Carrying balance	$	656,670		$	1,043,519

Increases in expected cash flows subsequent to the acquisition are recognized prospectively through adjustment of the yield on the loans or pools over its remaining life, while decreases in expected cash flows are recognized as impairment through a provision for loan loss and an increase in the allowance for covered loan losses. The most recent quarterly evaluation of the remaining contractual required payments receivable and cash flows expected to be collected resulted in an overall improvement in the cash flow expectations as a result of positive changes in risk ratings, improvements in the underlying value of collateral dependent loans and actual cash flows received higher than expected. There were no significant changes from prior periods to key assumptions used in the most recent quarterly evaluation of cash flows expected to be collected.

The overall improvement in the cash flow expectations resulted in the reclassification from nonaccretable difference to accretable yield of $10.6 million during the three months ended March 31, 2013. These reclassifications resulted in yield adjustments on these loans and pools on a prospective basis to interest income. Improved cash flow expectations for loans or pools that were impaired during prior periods were recorded first as a reversal of previously recorded impairment and then as an increase in prospective yield when all previously recorded impairment has been recaptured. Additionally, the FDIC loss share receivable was also reduced by the guaranteed portion of the additional cash flows expected to be received through an increase in provision expense and a corresponding reduction in the prospective yield of the remaining loss share receivable.

The most recent quarterly evaluation of the remaining contractual required payments receivable and cash flows expected to be collected resulted in the decline in the cash flow expectations of certain loans and pools during the three months ended March 31, 2013. The decline in expected cash flows was recorded as provision expense of $9.7 million in the three months ended March 31, 2013 with a related increase of $5.5 million in the loss share receivable for the portion of the losses recoverable under the loss share agreements with the FDIC. This decrease in cash flows resulted in a net provision for covered loan losses of $4.1 million for the three months ended March 31, 2013 compared to a net provision of $5.9 million for the three months ended March 31, 2012.

Credit Quality Disclosures

The credit quality of the Corporation's loan portfolios is assessed as a function of net credit losses, levels of nonperforming assets and delinquencies, and credit quality ratings as defined by the Corporation. These credit quality ratings are an important part of the Corporation's overall credit risk management process and evaluation of the allowance for credit losses.

Generally, loans, except for certain commercial, credit card and mortgage loans, and leases on which payments are past due for 90 days are placed on nonaccrual status, unless those loans are in the process of collection and, in Management's opinion, are fully secured. Credit card loans on which payments are past due for 120 days are placed on nonaccrual status. When a loan is placed on nonaccrual status, interest deemed uncollectible which had been accrued in prior years is charged against the allowance for loan losses and interest deemed uncollectible accrued in the current year is reversed against interest income. Interest on mortgage loans is accrued until Management deems it uncollectible based upon the specific identification method. Payments subsequently received on nonaccrual loans are generally applied to principal. A loan is returned to accrual status when principal and interest are no longer past due and collectability is probable. This generally requires timely principal and interest payments for a minimum of six consecutive payment cycles. Loans are generally written off when deemed uncollectible or when they reach a predetermined number of days past due depending upon loan product, terms and other factors.

The following tables provide a summary of loans by portfolio type, including the delinquency status of those loans that continue to accrue interest and those loans that are nonaccrual.



As of March 31, 2013
Legacy Loans													≥ 90 Days
	Days Past Due						Total				Total		Past Due and		Nonaccrual
	30-59		60-89		≥ 90		Past Due		Current		Loans		Accruing (a)		Loans
Commercial
C&I	$	3,828	$	1,372	$	4,188	$	9,388	$	3,369,057	$	3,378,445	$	—	$	8,274
CRE	2,872		3,442		8,668		14,982		2,149,975		2,164,957		1,683		11,676
Construction	—		—		1,134		1,134		309,591		310,725		1,058		439
Leases	—		—		—		—		164,137		164,137		—		—
Consumer
Installment	7,778		2,614		4,932		15,324		1,305,753		1,321,077		4,321		4,695
Home Equity Lines	1,287		479		1,172		2,938		792,540		795,478		275		2,275
Credit Cards	825		580		773		2,178		138,543		140,721		364		510
Residential Mortgages	11,312		2,732		5,921		19,965		430,334		450,299		4,508		9,484
Total	$	27,902	$	11,219	$	26,788	$	65,909	$	8,659,930	$	8,725,839	$	12,209	$	37,353
Acquired Loans (Noncovered)													≥ 90 Days
	Days Past Due						Total				Total		Past Due and		Nonaccrual
	30-59		60-89		≥ 90		Past Due		Current		Loans		Accruing		Loans
Commercial
C&I	$	—	$	—	$	—	$	—	$	4,179	$	4,179	$	—	$	—
CRE	—		324		2,696		3,020		27,011		30,031		—		3,454
Consumer
Installment	19		29		—		48		1,670		1,718		—		2
Home Equity Lines	51		17		139		207		16,773		16,980		184		—
Residential Mortgages	63		—		—		63		1,160		1,223		—		—
Total	$	133	$	370	$	2,835	$	3,338	$	50,793	$	54,131	$	184	$	3,456
Covered Loans (b)													≥ 90 Days
	Days Past Due						Total				Total		Past Due and		Nonaccrual
	30-59		60-89		≥ 90		Past Due		Current		Loans		Accruing (c)		Loans (c)
Commercial
C&I	$	1,685	$	1,038	$	21,343	$	24,066	$	87,357	$	111,423	n/a		n/a
CRE	2,617		13,964		161,256		177,837		290,125		467,962		n/a		n/a
Construction	—		—		36,157		36,157		5,646		41,803		n/a		n/a
Consumer
Installment	20		—		41		61		8,020		8,081		n/a		n/a
Home Equity Lines	1,567		119		1,881		3,567		109,776		113,343		n/a		n/a
Residential Mortgages	9,849		724		6,509		17,082		41,545		58,627		n/a		n/a
Total	$	15,738	$	15,845	$	227,187	$	258,770	$	542,469	$	801,239	n/a		n/a

(a) Installment loans 90 days or more past due and accruing include $3.5 million of loans guaranteed by the U.S. government as of March 31, 2013.

(b) Excludes loss share receivable of $95.6 million as of March 31, 2013.

(c) Acquired impaired loans were not classified as nonperforming assets at March 31, 2013 as the loans are considered to be performing under ASC 310-30. As a result interest income, through the accretion of the difference between the carrying amount of the loans and the expected cash flows, is being recognized on all acquired impaired loans. These asset quality disclosures are, therefore, not applicable to acquired impaired loans.



As of December 31, 2012
Legacy Loans													≥ 90 Days
	Days Past Due						Total				Total		Past Due and		Nonaccrual
	30-59		60-89		≥ 90		Past Due		Current		Loans		Accruing (a)		Loans
Commercial
C&I	$	3,814	$	1,788	$	3,571	$	9,173	$	3,294,527	$	3,303,700	$	104	$	5,255
CRE	4,181		4,483		8,901		17,565		2,175,967		2,193,532		382		13,018
Construction	981		—		597		1,578		333,969		335,547		—		731
Leases	6		—		—		6		139,230		139,236		—		—
Consumer
Installment	11,722		3,193		5,608		20,523		1,305,921		1,326,444		4,909		2,911
Home Equity Lines	1,584		880		1,227		3,691		784,988		788,679		475		1,557
Credit Cards	969		558		954		2,481		143,906		146,387		438		598
Residential Mortgages	13,228		2,488		5,231		20,947		423,028		443,975		3,076		9,852
Total	$	36,485	$	13,390	$	26,089	$	75,964	$	8,601,536	$	8,677,500	$	9,384	$	33,922

Acquired Loans (Noncovered)													≥ 90 Days
	Days Past Due						Total				Total		Past Due and		Nonaccrual
	30-59		60-89		≥ 90		Past Due		Current		Loans		Accruing		Loans
Commercial
C&I	$	—	$	198	$	—	$	198	$	2,628	$	2,826	$	—	$	—
CRE	—		47		2,634		2,681		28,203		30,884		—		2,762
Consumer
Installment	—		—		31		31		1,783		1,814		33		3
Home Equity Lines	—		—		—		—		17,399		17,399		—		—
Residential Mortgages	63		—		—		63		1,173		1,236		—		—
Total	$	63	$	245	$	2,665	$	2,973	$	51,186	$	54,159	$	33	$	2,765

Covered Loans (b)													≥ 90 Days
	Days Past Due						Total				Total		Past Due and		Nonaccrual
	30-59		60-89		≥ 90		Past Due		Current		Loans		Accruing (c)		Loans (c)
Commercial
C&I	$	931	$	981	$	24,111	$	26,023	$	102,486	$	128,509	n/a		n/a
CRE	4,130		15,019		172,444		191,593		348,002		539,595		n/a		n/a
Construction	589		7,925		34,314		42,828		7,505		50,333		n/a		n/a
Consumer
Installment	1		65		21		87		8,102		8,189		n/a		n/a
Home Equity Lines	1,528		654		2,211		4,393		112,832		117,225		n/a		n/a
Residential Mortgages	10,005		442		7,763		18,210		43,330		61,540		n/a		n/a
Total	$	17,184	$	25,086	$	240,864	$	283,134	$	622,257	$	905,391	n/a		n/a

(a) Installment loans 90 days or more past due and accruing include $3.4 million of loans guaranteed by the U.S. government as of December 31, 2012.

(b) Excludes loss share receivable of $113.7 million as of December 31, 2012.

(c) Acquired impaired loans were not classified as nonperforming assets at December 31, 2012 as the loans are considered to be performing under ASC 310-30. As a result interest income, through the accretion of the difference between the carrying amount of the loans and the expected cash flows, is being recognized on all acquired impaired loans. These asset quality disclosures are, therefore, not applicable to acquired impaired loans.



As of March 31, 2012
Legacy Loans													≥ 90 Days
	Days Past Due						Total				Total		Past Due and		Nonaccrual
	30-59		60-89		≥ 90		Past Due		Current		Loans		Accruing (a)		Loans
Commercial
C&I	$	9,683	$	598	$	4,464	$	14,745	$	2,858,427	$	2,873,172	$	260	$	5,450
CRE	7,066		2,270		23,439		32,775		1,951,798		1,984,573		614		32,145
Construction	279		—		5,309		5,588		280,127		285,715		—		5,451
Leases	775		—		—		775		73,337		74,112		—		—
Consumer
Installment	7,979		2,226		4,380		14,585		1,243,165		1,257,750		4,141		434
Home Equity Lines	2,229		469		1,126		3,824		717,013		720,837		556		1,113
Credit Cards	913		476		809		2,198		138,420		140,618		309		522
Residential Mortgages	8,269		2,444		10,029		20,742		406,540		427,282		3,381		6,648
Total	$	37,193	$	8,483	$	49,556	$	95,232	$	7,668,827	$	7,764,059	$	9,261	$	51,763

Acquired Loans (Noncovered)													≥ 90 Days
	Days Past Due						Total				Total		Past Due and		Nonaccrual
	30-59		60-89		≥ 90		Past Due		Current		Loans		Accruing		Loans
Commercial
C&I	$	—	$	—	$	65	$	65	$	17,488	$	17,553	$	—	$	70
CRE	818		—		706		1,524		57,514		59,038		—		1,430
Consumer
Installment	—		14		—		14		2,166		2,180		—		—
Home Equity Lines	220		25		—		245		18,466		18,711		—		—
Residential Mortgages	—		—		—		—		1,668		1,668		—		—
Total	$	1,038	$	39	$	771	$	1,848	$	97,302	$	99,150	$	—	$	1,500

Covered Loans (b)													≥ 90 Days
	Days Past Due						Total				Total		Past Due and		Nonaccrual
	30-59		60-89		≥ 90		Past Due		Current		Loans		Accruing (c)		Loans (c)
Commercial
C&I	$	3,736	$	105	$	28,654	$	32,495	$	149,471	$	181,966	n/a		n/a
CRE	29,417		3,318		162,963		195,698		530,405		726,103		n/a		n/a
Construction	1,695		11,688		57,628		71,011		12,208		83,219		n/a		n/a
Consumer
Installment	23		—		22		45		9,163		9,208		n/a		n/a
Home Equity Lines	1,093		1,141		260		2,494		134,003		136,497		n/a		n/a
Residential Mortgages	11,995		2,197		14,532		28,724		41,297		70,021		n/a		n/a
Total	$	47,959	$	18,449	$	264,059	$	330,467	$	876,547	$	1,207,014	n/a		n/a

(a) Installment loans 90 days or more past due and accruing include $3.3 million of loans guaranteed by the U.S. government as of March 31, 2012.

(b) Excludes loss share receivable of $171.1 million as of March 31, 2012.

(c) Acquired impaired loans were not classified as nonperforming assets at March 31, 2012 as the loans are considered to be performing under ASC 310-30. As a result interest income, through the accretion of the difference between the carrying amount of the loans and the expected cash flows, is being recognized on all acquired impaired loans. These asset quality disclosures are, therefore, not applicable to acquired impaired loans.

Individual commercial loans are assigned credit risk grades based on an internal assessment of conditions that affect a borrower’s ability to meet its contractual obligation under the loan agreement. The assessment process includes reviewing a borrower’s current financial information, historical payment experience, credit documentation, public information, and other information specific to each borrower. Commercial loans are reviewed on an annual, quarterly or rotational basis or as Management becomes aware of information during a borrower’s ability to fulfill its obligation. For consumer loans, Management evaluates credit quality based on the aging status of the loan as well as by payment activity, which is presented in the above tables.

The credit-risk grading process for commercial loans is summarized as follows:

“Pass” Loans (Grades 1, 2, 3, 4) are not considered a greater than normal credit risk. Generally, the borrowers have the apparent ability to satisfy obligations to the bank, and the Corporation anticipates insignificant uncollectible amounts based on its individual loan review.

“Special-Mention” Loans (Grade 5) are commercial loans that have identified potential weaknesses that deserve Management’s close attention. If left uncorrected, these potential weaknesses may result in noticeable deterioration of the repayment prospects for the asset or in the institution’s credit position.

“Substandard” Loans (Grade 6) are inadequately protected by the current financial condition and paying capacity of the obligor or by any collateral pledged. Loans so classified have a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt pursuant to the contractual principal and interest terms. Such loans are characterized by the distinct possibility that the Corporation may sustain some loss if the deficiencies are not corrected.

“Doubtful” Loans (Grade 7) have all the weaknesses inherent in those classified as substandard, with the added characteristic that existing facts, conditions, and values make collection or liquidation in full highly improbable. Such loans are currently managed separately to determine the highest recovery alternatives.

“Loss” Loans (Grade 8) are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. These loans are charged off when loss is identified.

The following tables provide a summary of commercial loans by portfolio type and the Corporation's internal credit quality rating.



As of March 31, 2013
Legacy Loans
	Commercial
	C&I		CRE		Construction		Leases
Grade 1	$	39,433	$	271	$	—	$	13,330
Grade 2	148,253		3,968		—		731
Grade 3	688,264		251,664		19,243		25,808
Grade 4	2,399,913		1,807,724		286,093		116,314
Grade 5	63,287		45,328		1,367		4,636
Grade 6	39,295		56,002		4,022		3,318
Grade 7	—		—		—		—
Total	$	3,378,445	$	2,164,957	$	310,725	$	164,137
Acquired Loans (Noncovered)
	Commercial
	C&I		CRE		Construction		Leases
Grade 1	$	—	$	—	$	—	$	—
Grade 2	—		—		—		—
Grade 3	—		—		—		—
Grade 4	4,179		25,168		—		—
Grade 5	—		1,155		—		—
Grade 6	—		3,708		—		—
Grade 7	—		—		—		—
Total	$	4,179	$	30,031	$	—	$	—
Covered Loans
	Commercial
	C&I		CRE		Construction		Leases
Grade 1	$	—	$	—	$	—	$	—
Grade 2	1,009		—		—		—
Grade 3	92		—		—		—
Grade 4	61,012		184,920		551		—
Grade 5	1,028		25,048		1,586		—
Grade 6	46,233		256,565		36,449		—
Grade 7	2,049		1,429		3,217		—
Total	$	111,423	$	467,962	$	41,803	$	—



As of December 31, 2012
Legacy Loans
	Commercial
	C&I		CRE		Construction		Leases
Grade 1	$	42,211	$	—	$	—	$	13,119
Grade 2	114,480		3,138		—		179
Grade 3	661,692		254,749		17,652		20,042
Grade 4	2,406,174		1,818,818		311,271		104,037
Grade 5	44,638		53,008		3,057		1,561
Grade 6	34,505		63,819		3,567		298
Grade 7	—		—		—		—
Total	$	3,303,700	$	2,193,532	$	335,547	$	139,236
Acquired Loans (Noncovered)
	Commercial
	C&I		CRE		Construction		Leases
Grade 1	$	—	$	—	$	—	$	—
Grade 2	—		—		—		—
Grade 3	—		—		—		—
Grade 4	2,495		26,868		—		—
Grade 5	331		667		—		—
Grade 6	—		3,349		—		—
Grade 7	—		—		—		—
Total	$	2,826	$	30,884	$	—	$	—
Covered Loans
	Commercial
	C&I		CRE		Construction		Leases
Grade 1	$	—	$	—	$	—	$	—
Grade 2	1,526		—		—		—
Grade 3	—		—		—		—
Grade 4	73,480		214,987		476		—
Grade 5	3,215		30,708		1,331		—
Grade 6	47,468		292,158		45,838		—
Grade 7	2,820		1,742		2,688		—
Total	$	128,509	$	539,595	$	50,333	$	—



As of March 31, 2012
Legacy Loans
	Commercial
	C&I		CRE		Construction		Leases
Grade 1	$	40,605	$	—	$	—	$	10,706
Grade 2	97,078		6,210		610		—
Grade 3	521,791		243,461		18,208		7,098
Grade 4	2,070,512		1,554,118		251,354		55,930
Grade 5	51,591		70,452		4,257		—
Grade 6	91,527		110,332		11,286		378
Grade 7	68		—		—		—
Total	$	2,873,172	$	1,984,573	$	285,715	$	74,112
Acquired Loans (Noncovered)
	Commercial
	C&I		CRE		Construction		Leases
Grade 1	$	—	$	—	$	—	$	—
Grade 2	—		—		—		—
Grade 3	—		—		—		—
Grade 4	17,307		56,341		—		—
Grade 5	—		—		—		—
Grade 6	246		2,697		—		—
Grade 7	—		—		—		—
Total	$	17,553	$	59,038	$	—	$	—
Covered Loans
	Commercial
	C&I		CRE		Construction		Leases
Grade 1	$	926	$	—	$	—	$	—
Grade 2	1,384		—		—		—
Grade 3	523		495		—		—
Grade 4	98,347		272,278		487		—
Grade 5	7,913		90,901		1,613		—
Grade 6	67,000		349,702		72,675		—
Grade 7	5,873		12,727		8,444		—
Total	$	181,966	$	726,103	$	83,219	$	—