Allowance for Credit Losses

3 Months Ended

Mar. 31, 2013

Receivables [Abstract]

Allowance for Credit Losses

Note 8. Allowance for Credit Losses

The allowance for credit losses consists of the allowance for losses on non-covered loans and allowance for losses on covered loans related to credit impairment of certain covered loan pools subsequent to acquisition, as well as the allowance for unfunded letters of credit. Management maintains the allowance for credit losses at a level estimated to absorb probable loan losses of the loan portfolio and unfunded letter of credit commitments at the balance sheet date. The allowance for losses on non-covered loans is based on ongoing evaluations of the probable estimated losses inherent in the non-covered loan portfolio, including unexpected credit impairment of non-covered PCI loan pools subsequent to the acquisition date.

The following table summarizes the allowance for credit losses at March 31, 2013 and December 31, 2012:

	March 31, 2013		December 31, 2012
	(in thousands)
Components of allowance for credit losses:
Allowance for non-covered loans	$	114,664	$	120,708
Allowance for covered loans		7,180		9,492
Total allowance for loan losses		121,844		130,200
Allowance for unfunded letters of credit		2,520		2,295
Total allowance for credit losses	$	124,364	$	132,495

The following table summarizes the provision for credit losses for the periods indicated:

	Three Months Ended March 31,
	2013			2012
	(in thousands)
Components of provision for credit losses:
Provision for non-covered loans	$	3,710		$	5,374
Provision for covered loans		(2,166	)		—
Total provision for loan losses		1,544			5,374
Provision for unfunded letters of credit		225			323
Total provision for credit losses	$	1,769		$	5,697

The following table details activity in the allowance for loan losses by portfolio segment for the quarters ended March 31, 2013 and 2012:

	Commercial and  Industrial			Commercial Real Estate			Residential Mortgage			Consumer			Unallocated			Total
	(in thousands)
Quarter Ended March 31, 2013
Allowance for loan losses:
Beginning balance	$	64,370		$	44,069		$	9,423		$	5,542		$	6,796		$	130,200
Loans charged-off		(7,325	)		(1,993	)		(892	)		(1,509	)		—			(11,719	)
Charged-off loans recovered		1,338			15			70			396			—			1,819
Net charge-offs		(5,987	)		(1,978	)		(822	)		(1,113	)		—			(9,900	)
Provision for loan losses		(2,651	)		2,104			730			1,031			330			1,544
Ending balance	$	55,732		$	44,195		$	9,331		$	5,460		$	7,126		$	121,844
Quarter Ended March 31, 2012
Allowance for loan losses:
Beginning balance	$	73,649		$	34,637		$	9,120		$	8,677		$	7,719		$	133,802
Loans charged-off		(4,807	)		(1,080	)		(1,176	)		(1,483	)		—			(8,546	)
Charged-off loans recovered		1,005			120			514			601			—			2,240
Net charge-offs		(3,802	)		(960	)		(662	)		(882	)		—			(6,306	)
Provision for loan losses		3,464			738			1,379			145			(352	)		5,374
Ending balance	$	73,311		$	34,415		$	9,837		$	7,940		$	7,367		$	132,870

The following table represents the allocation of the allowance for loan losses and the related loans by loan portfolio segment disaggregated based on the impairment methodology at March 31, 2013 and December 31, 2012.

	Commercial and Industrial		Commercial Real Estate		Residential Mortgage		Consumer		Unallocated		Total
	(in thousands)
March 31, 2013
Allowance for loan losses:
Individually evaluated for impairment	$	9,759	$	14,478	$	3,897	$	16	$	—	$	28,150
Collectively evaluated for impairment		45,461		23,285		5,201		5,441		7,126		86,514
Loans acquired with discounts related to credit quality		512		6,432		233		3		—		7,180
Total	$	55,732	$	44,195	$	9,331	$	5,460	$	7,126	$	121,844
Loans:
Individually evaluated for impairment	$	48,633	$	130,966	$	27,824	$	1,244	$	—	$	208,667
Collectively evaluated for impairment		1,762,928		4,039,801		2,308,997		1,420,078		—		9,531,804
Loans acquired with discounts related to credit quality		268,644		734,817		24,750		42,817		—		1,071,028
Total	$	2,080,205	$	4,905,584	$	2,361,571	$	1,464,139	$	—	$	10,811,499
December 31, 2012
Allowance for loan losses:
Individually evaluated for impairment	$	12,088	$	16,581	$	2,329	$	15	$	—	$	31,013
Collectively evaluated for impairment		44,877		25,463		7,032		5,527		6,796		89,695
Loans acquired with discounts related to credit quality		7,405		2,025		62		—		—		9,492
Total	$	64,370	$	44,069	$	9,423	$	5,542	$	6,796	$	130,200
Loans:
Individually evaluated for impairment	$	49,697	$	131,216	$	24,891	$	930	$	—	$	206,734
Collectively evaluated for impairment		1,783,046		4,040,723		2,420,736		1,403,896		—		9,648,401
Loans acquired with discounts related to credit quality		298,600		793,406		26,461		49,197		—		1,167,664
Total	$	2,131,343	$	4,965,345	$	2,472,088	$	1,454,023	$	—	$	11,022,799