Allowances for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2015

Activity in Allowance for Loan Losses

The following tables provide additional information regarding the Company’s allowances for losses on non-covered and covered loans, based upon the method of evaluating loan impairment:

(in thousands)	Mortgage		Other		Total
Allowances for Loan Losses at March 31, 2015:
Loans individually evaluated for impairment	$	--	$	--	$	--
Loans collectively evaluated for impairment		116,928		22,824		139,752
Acquired loans with deteriorated credit quality		24,457		21,901		46,358
Total	$	141,385	$	44,725	$	186,110

(in thousands)	Mortgage		Other		Total
Allowances for Loan Losses at December 31, 2014:
Loans individually evaluated for impairment	$	26	$	--	$	26
Loans collectively evaluated for impairment		122,590		17,241		139,831
Acquired loans with deteriorated credit quality		23,538		21,943		45,481
Total	$	146,154	$	39,184	$	185,338

Additional Information Regarding Methods Used to Evaluate Loan Portfolio for Impairment

The following tables provide additional information regarding the methods used to evaluate the Company’s loan portfolio for impairment:

(in thousands)	Mortgage		Other		Total
Loans Receivable at March 31, 2015:
Loans individually evaluated for impairment	$	69,448	$	6,147	$	75,595
Loans collectively evaluated for impairment		31,617,139		1,284,505		32,901,644
Acquired loans with deteriorated credit quality		2,166,111		189,544		2,355,655
Total	$	33,852,698	$	1,480,196	$	35,332,894

(in thousands)	Mortgage		Other		Total
Loans Receivable at December 31, 2014:
Loans individually evaluated for impairment	$	81,574	$	6,806	$	88,380
Loans collectively evaluated for impairment		31,781,623		1,134,358		32,915,981
Acquired loans with deteriorated credit quality		2,227,572		201,050		2,428,622
Total	$	34,090,769	$	1,342,214	$	35,432,983

Additional Information Regarding Impaired Non-Covered Loans

The following table presents additional information about the Company’s impaired non-covered loans at March 31, 2015:

(in thousands)	Recorded   Investment		Unpaid   Principal   Balance		Related   Allowance		Average Recorded   Investment		Interest Income   Recognized
Impaired loans with no related allowance:
Multi-family	$	36,199	$	44,086	$	--	$	40,791	$	371
Commercial real estate		31,086		33,268		--		30,729		364
One-to-four family		1,509		1,550		--		1,769		--
Acquisition, development, and construction		654		1,024		--		654		--
Commercial and industrial		6,147		11,782		--		6,476		60
Total impaired loans with no related allowance	$	75,595	$	91,710	$	--	$	80,419	$	795
Impaired loans with an allowance recorded:
Multi-family	$	--	$	--	$	--	$	--	$	--
Commercial real estate		--		--		--		--		--
One-to-four family		--		--		--		--		--
Acquisition, development, and construction		--		--		--		--		--
Commercial and industrial		--		--		--		--		--
Total impaired loans with an allowance recorded	$	--	$	--	$	--	$	--	$	--
Total impaired loans:
Multi-family	$	36,199	$	44,086	$	--	$	40,791	$	371
Commercial real estate		31,086		33,268		--		30,729		364
One-to-four family		1,509		1,550		--		1,769		--
Acquisition, development, and construction		654		1,024		--		654		--
Commercial and industrial		6,147		11,782		--		6,476		60
Total impaired loans	$	75,595	$	91,710	$	--	$	80,419	$	795

The following table presents additional information about the Company’s impaired non-covered loans at December 31, 2014:

(in thousands)	Recorded   Investment		Unpaid   Principal   Balance		Related   Allowance		Average Recorded   Investment		Interest Income   Recognized
Impaired loans with no related allowance:
Multi-family	$	45,383	$	52,593	$	--	$	54,051	$	1,636
Commercial real estate		30,370		32,460		--		29,935		1,629
One-to-four family		2,028		2,069		--		1,254		--
Acquisition, development, and construction		654		1,024		--		505		218
Commercial and industrial		6,806		12,155		--		7,749		307
Total impaired loans with no related allowance	$	85,241	$	100,301	$	--	$	93,494	$	3,790
Impaired loans with an allowance recorded:
Multi-family	$	3,139	$	3,139	$	26	$	628	$	72
Commercial real estate		--		--		--		490		--
One-to-four family		--		--		--		61		--
Acquisition, development, and construction		--		--		--		--		--
Commercial and industrial		--		--		--		--		--
Total impaired loans with an allowance recorded	$	3,139	$	3,139	$	26	$	1,179	$	72
Total impaired loans:
Multi-family	$	48,522	$	55,732	$	26	$	54,679	$	1,708
Commercial real estate		30,370		32,460		--		30,425		1,629
One-to-four family		2,028		2,069		--		1,315		--
Acquisition, development, and construction		654		1,024		--		505		218
Commercial and industrial		6,806		12,155		--		7,749		307
Total impaired loans	$	88,380	$	103,440	$	26	$	94,673	$	3,862

Non-Covered Loans

Activity in Allowance for Loan Losses

The following table summarizes activity in the allowance for losses on non-covered loans for the three months ended March 31, 2015 and 2014:

	March 31,
	2015						2014
(in thousands)	Mortgage		Other		Total		Mortgage		Other		Total
Balance, beginning of period		$122,616		$17,241		$139,857		$127,840		$14,106		$141,946
Charge-offs		(485)		(313)		(798)		(950)		(2,032)		(2,982)
Recoveries		1,400		163		1,563		336		61		397
Transfer from the allowance for losses on covered loans (1)		2,250		166		2,416		--		--		--
(Recovery of) provision for non-covered loan losses		(6,603)		5,733		(870)		--		--		--
Balance, end of period		$119,178		$22,990		$142,168		$127,226		$12,135		$139,361

(1) Represents the allowance associated with $14.2 million of loans acquired in the Desert Hills transaction that were transferred from covered loans to non-covered loans upon expiration of the related FDIC loss sharing agreement.

Covered Loans

Activity in Allowance for Loan Losses

The following table summarizes activity in the allowance for losses on covered loans for the three months ended March 31, 2015 and 2014:

	March 31,
(in thousands)	2015			2014
Balance, beginning of period	$	45,481		$	64,069
Provision for (recovery of) losses on covered loans		877			(14,630	)
Transfer to the allowance for losses on non-covered loans		(2,416	)		--
Balance, end of period	$	43,942		$	49,439