Loans (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of Loan Portfolio Non-Covered and Covered PCI Loans and Non-PCI Loans

The detail of the loan portfolio as of September 30, 2012 and December 31, 2011 was as follows:

	September 30, 2012						December 31, 2011
	Non-PCI Loans		PCI Loans		Total		Non-PCI Loans		PCI Loans		Total
	(in thousands)
Non-covered loans:
Commercial and industrial	$	1,847,650	$	271,220	$	2,118,870	$	1,878,387	$	-	$	1,878,387
Commercial real estate:
Commercial real estate		3,752,963		692,375		4,445,338		3,574,089		-		3,574,089
Construction		397,292		38,647		435,939		411,003		-		411,003
Total commercial real estate loans		4,150,255		731,022		4,881,277		3,985,092		-		3,985,092
Residential mortgage		2,482,363		17,191		2,499,554		2,285,590		-		2,285,590
Consumer:
Home equity		445,402		46,936		492,338		469,604		-		469,604
Automobile		789,248		-		789,248		772,490		-		772,490
Other consumer		159,667		451		160,118		136,634		-		136,634
Total consumer loans		1,394,317		47,387		1,441,704		1,378,728		-		1,378,728
Total non-covered loans	$	9,874,585	$	1,066,820	$	10,941,405	$	9,527,797	$	-	$	9,527,797
Covered loans:
Commercial and industrial	$	-	$	51,706	$	51,706	$	-	$	83,742	$	83,742
Commercial real estate		-		136,304		136,304		-		160,651		160,651
Construction		-		4,751		4,751		-		6,974		6,974
Residential mortgage		-		11,760		11,760		-		15,546		15,546
Consumer		-		3,012		3,012		-		4,931		4,931
Total covered loans		-		207,533		207,533		-		271,844		271,844
Total loans	$	9,874,585	$	1,274,353	$	11,148,938	$	9,527,797	$	271,844	$	9,799,641

Information Regarding Estimates of Contractually Required Payments Receivable, Cash Flows Expected to be Collected, and Estimated Fair Value of PCI Loans

The following table presents information regarding the estimates of the contractually required payments, the cash flows expected to be collected, and the estimated fair value of the PCI loans acquired in the State Bancorp (see Note 3) acquisition as of January 1, 2012 and PCI loans purchased from another financial institution as of March 28, 2012:

	January 1, 2012			March 28, 2012
	(in thousands)
Contractually required principal and interest	$	1,333,686		$	144,357
Contractual cash flows not expected to be collected (non-accretable difference)		(66,467	)		(9,111	)
Expected cash flows to be collected		1,267,219			135,246
Interest component of expected cash flows (accretable yield)		(168,271	)		(17,991	)
Fair value of acquired loans	$	1,098,948		$	117,255

Changes in Accretable Yield for PCI Loans

The following table presents changes in the accretable yield for PCI loans during the three and nine months ended September 30, 2012 and 2011:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
				(in thousands)
Balance, beginning of period	$	209,417		$	101,517		$	66,724		$	101,052
Acquisitions		-			-			186,262			-
Accretion		(21,284	)		(12,122	)		(64,853	)		(28,640	)
Net reclassification from non-accretable difference		-			-			-			16,983
Balance, end of period	$	188,133		$	89,395		$	188,133		$	89,395

Changes in FDIC Loss-Share Receivable

Changes in FDIC loss-share receivable for three and nine months ended September 30, 2012 and 2011 were as follows:

	Three Months ended September 30,						Nine Months ended September 30,
	2012			2011			2012			2011
	(in thousands)
Balance, beginning of the period	$	59,741		$	80,179		$	74,390		$	89,359
Discount accretion of the present value at the acquisition dates		82			146			244			437
Effect of additional cash flows on covered loans (prospective recognition)		(2,091	)		(2,889	)		(5,959	)		(8,167	)
Increase due to impairment on covered loans		-			-			-			16,932
Other reimbursable expenses		1,619			1,166			4,173			2,787
Reimbursements from the FDIC		(7,413	)		-			(14,950	)		(22,746	)
Other		-			-			(5,960	)		-
Balance, end of the period	$	51,938		$	78,602		$	51,938		$	78,602

Past Due, Non-Accrual and Current Loans (Excluding PCI Loans)

The following tables present past due, non-accrual and current loans (excluding PCI loans, which are accounted for on a pool basis) by loan portfolio class at September 30, 2012 and December 31, 2011:

	Past Due and Non-Accrual Loans
	30-89 Days Past Due Loans		Accruing Loans 90 Days Or More Past Due		Non-Accrual Loans		Total Past Due Loans		Current Non-PCI Loans		Total Non-PCI Loans
					(in thousands)
September 30, 2012
Commercial and industrial	$	17,459	$	-	$	12,296	$	29,755	$	1,817,895	$	1,847,650
Commercial real estate:
Commercial real estate		6,236		221		58,541		64,998		3,687,965		3,752,963
Construction		-		1,024		15,139		16,163		381,129		397,292
Total commercial real estate loans		6,236		1,245		73,680		81,161		4,069,094		4,150,255
Residential mortgage		16,961		1,051		31,564		49,576		2,432,787		2,482,363
Consumer loans:
Home equity		466		-		2,828		3,294		442,108		445,402
Automobile		5,760		180		344		6,284		782,964		789,248
Other consumer		237		17		659		913		158,754		159,667
Total consumer loans		6,463		197		3,831		10,491		1,383,826		1,394,317
Total	$	47,119	$	2,493	$	121,371	$	170,983	$	9,703,602	$	9,874,585

	Past Due and Non-Accrual Loans
	30-89 Days Past Due Loans		Accruing Loans 90 Days Or More Past Due		Non-Accrual Loans		Total Past Due Loans		Current Non-PCI Loans		Total Non-PCI Loans
					(in thousands)
December 31, 2011
Commercial and industrial	$	4,347	$	657	$	26,648	$	31,652	$	1,846,735	$	1,878,387
Commercial real estate:
Commercial real estate		13,115		422		42,186		55,723		3,518,366		3,574,089
Construction		2,652		1,823		19,874		24,349		386,654		411,003
Total commercial real estate loans		15,767		2,245		62,060		80,072		3,905,020		3,985,092
Residential mortgage		8,496		763		31,646		40,905		2,244,685		2,285,590
Consumer loans:
Home equity		989		13		2,700		3,702		465,902		469,604
Automobile		7,794		303		461		8,558		763,932		772,490
Other consumer		192		35		749		976		135,658		136,634
Total consumer loans		8,975		351		3,910		13,236		1,365,492		1,378,728
Total	$	37,585	$	4,016	$	124,264	$	165,865	$	9,361,932	$	9,527,797

Impaired Loans

they are accounted for on a pool basis. The following tables present the information about impaired loans by loan portfolio class at September 30, 2012 and December 31, 2011:

	Recorded Investment With No Related Allowance		Recorded Investment With Related Allowance		Total Recorded Investment		Unpaid Contractual Principal Balance		Related Allowance
			(in thousands)
September 30, 2012
Commercial and industrial	$	3,474	$	39,514	$	42,988	$	48,081	$	9,051
Commercial real estate:
Commercial real estate		25,267		83,522		108,789		123,785		11,067
Construction		7,483		12,822		20,305		23,934		708
Total commercial real estate loans		32,750		96,344		129,094		147,719		11,775
Residential mortgage		7,855		18,420		26,275		28,158		3,090
Consumer loans:
Home equity		1,642		264		1,906		2,269		15
Total consumer loans		1,642		264		1,906		2,269		15
Total	$	45,721	$	154,542	$	200,263	$	226,227	$	23,931
December 31, 2011
Commercial and industrial	$	6,193	$	48,665	$	54,858	$	71,111	$	11,105
Commercial real estate:
Commercial real estate		26,741		56,978		83,719		91,448		7,108
Construction		4,253		19,998		24,251		28,066		1,408
Total commercial real estate loans		30,994		76,976		107,970		119,514		8,516
Residential mortgage		998		20,007		21,005		22,032		3,577
Consumer loans:
Home equity		-		242		242		242		45
Total consumer loans		-		242		242		242		45
Total	$	38,185	$	145,890	$	184,075	$	212,899	$	23,243

Average Recorded Investment and Interest Income Recognized on Impaired Loans

The following tables present, by loan portfolio class, the average recorded investment and interest income recognized on impaired loans for the three and nine months ended September 30, 2012 and 2011:

	Three Months Ended September 30,
	2012				2011
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
			(in thousands)
Commercial and industrial	$	43,184	$	347	$	37,648	$	393
Commercial real estate:
Commercial real estate		108,561		993		81,638		739
Construction		21,920		97		31,741		845
Total commercial real estate loans		130,481		1,090		113,379		1,584
Residential mortgage		26,325		225		18,149		188
Consumer loans:
Home equity		1,908		2		28		-
Total consumer loans		1,908		2		28		-
Total	$	201,898	$	1,664	$	169,204	$	2,165

	Nine Months Ended September 30,
	2012				2011
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
			(in thousands)
Commercial and industrial	$	49,272	$	1,095	$	37,986	$	1,132
Commercial real estate:
Commercial real estate		99,939		1,984		71,968		2,095
Construction		21,882		183		33,435		1,107
Total commercial real estate loans		121,821		2,167		105,403		3,202
Residential mortgage		22,804		599		18,251		569
Consumer loans:
Home equity		829		9		28		1
Total consumer loans		829		9		28		1
Total	$	194,726	$	3,870	$	161,668	$	4,904

Pre-Modification and Post-Modification Outstanding Recorded Investments

The pre-modification and post-modification outstanding recorded investments disclosed in the table below represent the loan carrying amounts immediately prior to the modification and the post modification carrying amounts at September 30, 2012 and 2011, respectively.

	Three Months Ended September 30, 2012						Three Months Ended September 30, 2011
Troubled Debt Restructurings	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	($ in thousands)
Commercial and industrial(1)		3	$	11,512	$	11,503		1	$	12,952	$	12,952
Commercial real estate:
Commercial real estate		3		3,971		3,968		3		2,887		2,882
Construction		1		493		293		1		2,000		2,000
Total commercial real estate		4		4,464		4,261		4		4,887		4,882
Residential mortgage(2)		28		6,566		6,463		1		75		75
Consumer(2)		18		1,641		1,641		-		-		-
Total		53	$	24,183	$	23,868		6	$	17,914	$	17,909

	Nine Months Ended September 30, 2012						Nine Months Ended September 30, 2011
Troubled Debt Restructurings	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	($ in thousands)
Commercial and industrial(1)		16	$	31,212	$	27,828		17	$	19,145	$	18,999
Commercial real estate:
Commercial real estate		17		39,697		39,256		6		11,927		11,856
Construction		5		7,204		3,935		2		3,350		3,314
Total commercial real estate		22		46,901		43,191		8		15,277		15,170
Residential mortgage(2)		41		10,344		8,817		4		514		506
Consumer(2)		20		1,710		1,706		-		-		-
Total		99	$	90,167	$	81,542		29	$	34,936	$	34,675

⁽¹⁾  Includes 8 finance leases with pre and post-modification outstanding recorded investments totaling $335 thousand and $285 thousand, respectively, for the nine months ended September 30, 2011. There were no material modifications to finance leases during 2012.

⁽²⁾  Includes 26 residential mortgage and 18 home equity loans with the outstanding recorded investment (both pre and post-modification) of $5.8 million and $1.6 million respectively, that were classified as TDRs due to the OCC guidance issued in the third quarter of 2012.

Non-Covered Loans Modified as TDR

The following table presents non-PCI loans modified as TDRs within the previous 12 months from, and for which there was a payment default (90 days or more past due) during the three and nine months ended September 30, 2012:

Troubled Debt Restructurings Subsequently Defaulted	Three Months Ended September 30, 2012				Nine Months Ended September 30, 2012
	Number of Contracts		Recorded Investment		Number of Contracts	Recorded Investment
			($ in thousands)
Commercial and industrial		1	$	979	2	$	1,616
Commercial real estate		-		-	1		1,093
Residential mortgage		-		-	1		58
Total		1	$	979	4	$	2,767

Risk Category of Loans (Excluding PCI Loans)

The following table presents the risk category of loans (excluding PCI loans) by class of loans based on the most recent analysis performed at September 30, 2012 and December 31, 2011.

Credit exposure - by internally assigned risk rating	Pass		Special Mention		Substandard		Doubtful		Total
	(in thousands)
September 30, 2012
Commercial and industrial	$	1,672,602	$	64,492	$	110,332	$	224	$	1,847,650
Commercial real estate		3,549,638		49,531		153,794		-		3,752,963
Construction		336,396		34,928		25,968		-		397,292
Total	$	5,558,636	$	148,951	$	290,094	$	224	$	5,997,905
December 31, 2011
Commercial and industrial	$	1,669,943	$	95,726	$	112,186	$	532	$	1,878,387
Commercial real estate		3,350,475		82,612		141,002		-		3,574,089
Construction		329,848		42,845		38,114		196		411,003
Total	$	5,350,266	$	221,183	$	291,302	$	728	$	5,863,479

Recorded Investment in Loan Classes Based on Payment Activity

The following table presents the recorded investment in those loan classes based on payment activity as of September 30, 2012 and December 31, 2011:

Credit exposure - by payment activity	Performing Loans		Non-Performing Loans		Total Loans
	(in thousands)
September 30, 2012
Residential mortgage	$	2,450,799	$	31,564	$	2,482,363
Home equity		442,574		2,828		445,402
Automobile		788,904		344		789,248
Other consumer		159,008		659		159,667
Total	$	3,841,285	$	35,395	$	3,876,680
December 31, 2011
Residential mortgage	$	2,253,944	$	31,646	$	2,285,590
Home equity		466,904		2,700		469,604
Automobile		772,029		461		772,490
Other consumer		135,885		749		136,634
Total	$	3,628,762	$	35,556	$	3,664,318

Recorded Investment in PCI Loans by Class Based on Individual Loan Payment Activity

The following table presents the recorded investment in PCI loans by class based on individual loan payment activity as of September 30, 2012 and December 31, 2011.

Credit exposure - by payment activity	Performing Loans		Non-Performing Loans		Total PCI Loans
	(in thousands)
September 30, 2012
Commercial and industrial	$	318,415	$	4,511	$	322,926
Commercial real estate		770,914		57,765		828,679
Construction		32,927		10,471		43,398
Residential mortgage		24,473		4,478		28,951
Consumer		48,974		1,425		50,399
Total	$	1,195,703	$	78,650	$	1,274,353
December 31, 2011
Commercial and industrial	$	67,424	$	16,318	$	83,742
Commercial real estate		112,047		48,604		160,651
Construction		623		6,351		6,974
Residential mortgage		10,118		5,428		15,546
Consumer		4,931		-		4,931
Total	$	195,143	$	76,701	$	271,844