LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 2015

Loans and Leases Receivable Disclosure [Abstract]

Schedule of the composition of Non-PCI and PCI loans

The following table presents the composition of the Company’s non-PCI and PCI loans as of September 30, 2015 and December 31, 2014:




	September 30, 2015									December 31, 2014
($ in thousands)	Non-PCI Loans			PCI Loans ⁽¹⁾			Total ⁽¹⁾			Non-PCI Loans			PCI Loans ⁽¹⁾			Total ⁽¹⁾
CRE:
Income Producing	$	6,518,052		$	570,356		$	7,088,408		$	5,568,046		$	688,013		$	6,256,059
Construction	429,417			6,780			436,197			319,843			12,444			332,287
Land	178,976			6,423			185,399			214,327			16,840			231,167
Total CRE	7,126,445			583,559			7,710,004			6,102,216			717,297			6,819,513
C&I:
Commercial business	7,739,829			61,300			7,801,129			7,097,853			83,336			7,181,189
Trade finance	813,711			4,316			818,027			889,728			6,284			896,012
Total C&I	8,553,540			65,616			8,619,156			7,987,581			89,620			8,077,201
Residential:
Single-family	2,807,248			195,560			3,002,808			3,647,262			219,519			3,866,781
Multifamily	1,312,151			180,210			1,492,361			1,184,017			265,891			1,449,908
Total residential	4,119,399			375,770			4,495,169			4,831,279			485,410			5,316,689
Consumer	1,809,519			25,060			1,834,579			1,483,956			29,786			1,513,742
Total loans	$	21,608,903		$	1,050,005		$	22,658,908		$	20,405,032		$	1,322,113		$	21,727,145
Unearned fees, premiums, and discounts, net	(13,176		)	—			(13,176		)	2,804			—			2,804
Allowance for loan losses	(263,889		)	(541		)	(264,430		)	(260,965		)	(714		)	(261,679		)
Loans, net	$	21,331,838		$	1,049,464		$	22,381,302		$	20,146,871		$	1,321,399		$	21,468,270

(1) Loans net of ASC 310-30 discount.

Summary of credit risk rating by portfolio segment

The following tables present the credit risk rating for PCI loans by portfolio segment as of September 30, 2015 and December 31, 2014:




($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Total PCI Loans
September 30, 2015
CRE:
Income producing	$	454,052	$	7,005	$	109,299	$	—	$	—	$	570,356
Construction	—		—		6,780		—		—		6,780
Land	4,625		—		1,798		—		—		6,423
C&I:
Commercial business	54,899		875		5,526		—		—		61,300
Trade finance	2,590		—		1,726		—		—		4,316
Residential:
Single-family	190,136		1,158		4,266		—		—		195,560
Multifamily	153,036		—		27,174		—		—		180,210
Consumer	24,244		338		478		—		—		25,060
Total ⁽¹⁾	$	883,582	$	9,376	$	157,047	$	—	$	—	$	1,050,005

(1) Loans net of ASC 310-30 discount.




($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Total PCI Loans
December 31, 2014
CRE:
Income producing	$	534,015	$	9,960	$	144,038	$	—	$	—	$	688,013
Construction	589		1,744		10,111		—		—		12,444
Land	7,012		5,391		4,437		—		—		16,840
C&I:
Commercial business	70,586		1,103		11,647		—		—		83,336
Trade finance	4,620		—		1,664		—		—		6,284
Residential:
Single-family	213,829		374		5,316		—		—		219,519
Multifamily	230,049		—		35,842		—		—		265,891
Consumer	29,026		116		644		—		—		29,786
Total ⁽¹⁾	$	1,089,726	$	18,688	$	213,699	$	—	$	—	$	1,322,113

(1) Loans net of ASC 310-30 discount.

The following tables present the credit risk rating for non-PCI loans by portfolio segment as of September 30, 2015 and December 31, 2014:




($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Total Non-PCI Loans
September 30, 2015
CRE:
Income producing	$	6,241,315	$	52,904	$	223,833	$	—	$	—	$	6,518,052
Construction	425,354		—		4,063		—		—		429,417
Land	160,657		—		18,319		—		—		178,976
C&I:
Commercial business	7,430,295		153,160		156,030		344		—		7,739,829
Trade finance	767,236		17,382		29,093		—		—		813,711
Residential:
Single-family	2,783,817		4,328		19,103		—		—		2,807,248
Multifamily	1,250,706		1,190		60,255		—		—		1,312,151
Consumer	1,805,240		1,328		2,951		—		—		1,809,519
Total	$	20,864,620	$	230,292	$	513,647	$	344	$	—	$	21,608,903




($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Loss		Total Non-PCI Loans
December 31, 2014
CRE:
Income producing	$	5,243,640	$	54,673	$	269,733	$	—	$	—	$	5,568,046
Construction	310,259		11		9,573		—		—		319,843
Land	185,220		5,701		23,406		—		—		214,327
C&I:
Commercial business	6,836,914		130,319		130,032		533		55		7,097,853
Trade finance	845,889		13,031		30,808		—		—		889,728
Residential:
Single-family	3,627,491		3,143		16,628		—		—		3,647,262
Multifamily	1,095,982		5,124		82,911		—		—		1,184,017
Consumer	1,480,208		1,005		2,743		—		—		1,483,956
Total	$	19,625,603	$	213,007	$	565,834	$	533	$	55	$	20,405,032

Schedule of aging analysis on non-PCI loans

The following tables present the aging analysis on non-PCI loans as of September 30, 2015 and December 31, 2014:




($ in thousands)	Accruing Loans 30-59 Days Past Due		Accruing Loans 60-89 Days Past Due		Total Accruing Past Due Loans		Nonaccrual Loans Less Than 90 Days Past Due		Nonaccrual Loans 90 or More Days Past Due		Total Nonaccrual Loans		Current Accruing Loans		Total Non-PCI Loans
September 30, 2015
CRE:
Income producing	$	12,964	$	11,770	$	24,734	$	10,817	$	18,822	$	29,639	$	6,463,679	$	6,518,052
Construction	—		11		11		14		745		759		428,647		429,417
Land	—		9,739		9,739		1,081		615		1,696		167,541		178,976
C&I:
Commercial business	29,143		737		29,880		43,574		17,129		60,703		7,649,246		7,739,829
Trade finance	—		—		—		—		—		—		813,711		813,711
Residential:
Single-family	7,053		3,491		10,544		99		10,968		11,067		2,785,637		2,807,248
Multifamily	5,107		7,155		12,262		7,922		5,205		13,127		1,286,762		1,312,151
Consumer	691		114		805		161		367		528		1,808,186		1,809,519
Total	$	54,958	$	33,017	$	87,975	$	63,668	$	53,851	$	117,519	$	21,403,409	$	21,608,903
Unearned fees, premiums and discounts, net															(13,176		)
Total recorded investment in non-PCI loans															$	21,595,727




($ in thousands)	Accruing Loans 30-59 Days Past Due		Accruing Loans 60-89 Days Past Due		Total Accruing Past Due Loans		Nonaccrual Loans Less Than 90 Days Past Due		Nonaccrual Loans 90 or More Days Past Due		Total Nonaccrual Loans		Current Accruing Loans		Total Non-PCI Loans
December 31, 2014
CRE:
Income producing	$	14,171	$	3,593	$	17,764	$	19,348	$	9,165	$	28,513	$	5,521,769	$	5,568,046
Construction	—		—		—		15		6,898		6,913		312,930		319,843
Land	—		—		—		221		2,502		2,723		211,604		214,327
C&I:
Commercial business	3,187		4,361		7,548		6,623		21,813		28,436		7,061,869		7,097,853
Trade finance	—		—		—		73		292		365		889,363		889,728
Residential:
Single-family	6,381		1,294		7,675		2,861		5,764		8,625		3,630,962		3,647,262
Multifamily	4,425		507		4,932		12,460		8,359		20,819		1,158,266		1,184,017
Consumer	2,154		162		2,316		169		3,699		3,868		1,477,772		1,483,956
Total	$	30,318	$	9,917	$	40,235	$	41,770	$	58,492	$	100,262	$	20,264,535	$	20,405,032
Unearned fees, premiums and discounts, net															2,804
Total recorded investment in non-PCI loans															$	20,407,836

Summary of additions to non-PCI troubled debt restructurings

The following tables present the additions to non-PCI TDRs during the three and nine months ended September 30, 2015 and 2014:




	Loans Modified as TDRs During the Three Months Ended September 30,
	2015							2014
($ in thousands)	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment ⁽¹⁾		Financial Impact ⁽²⁾		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment ⁽¹⁾		Financial Impact⁽²⁾
CRE:
Income producing	1	$	451	$	403	$	—	—	$	—	$	—	$	—
Land	1	$	2,056	$	788	$	—	—	$	—	$	—	$	—
C&I:
Commercial business	3	$	4,596	$	4,423	$	1,229	1	$	54	$	54	$	10
Trade finance	—	$	—	$	—	$	—	1	$	190	$	111	$	14
Residential:
Single-family	—	$	—	$	—	$	—	2	$	1,474	$	1,473	$	—
Consumer	—	$	—	$	—	$	—	1	$	509	$	504	$	—




	Loans Modified as TDRs During the Nine Months Ended September 30,
	2015							2014
($ in thousands)	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment ⁽¹⁾		Financial Impact ⁽²⁾		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment ⁽¹⁾		Financial Impact⁽²⁾
CRE:
Income producing	2	$	1,279	$	1,209	$	—	2	$	5,318	$	5,193	$	—
Land	2	$	2,227	$	881	$	102	—	$	—	$	—	$	—
C&I:
Commercial business	16	$	42,686	$	35,365	$	6,726	8	$	2,940	$	2,167	$	1,821
Trade finance	—	$	—	$	—	$	—	1	$	190	$	111	$	14
Residential:
Single-family	1	$	281	$	279	$	2	9	$	11,454	$	8,356	$	—
Multifamily	—	$	—	$	—	$	—	1	$	2,513	$	2,832	$	—
Consumer	—	$	—	$	—	$	—	1	$	509	$	504	$	—

(1) Includes subsequent payments after modification and reflects the balance as of September 30, 2015 and 2014.

(2) The financial impact includes charge-offs and specific reserves recorded at the modification date.

Summary of non-PCI impaired loans

The following tables present the non-PCI impaired loans as of September 30, 2015 and December 31, 2014:




($ in thousands)	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
September 30, 2015
CRE:
Income producing	$	49,302	$	29,352	$	12,731	$	42,083	$	1,322
Construction	805		745		14		759		3
Land	8,439		1,403		989		2,392		94
C&I:
Commercial business	85,352		19,760		55,251		75,011		20,368
Trade finance	11,119		—		11,119		11,119		91
Residential:
Single-family	19,581		6,322		11,786		18,108		689
Multifamily	26,491		17,699		6,518		24,217		273
Consumer	1,246		—		1,246		1,246		59
Total	$	202,335	$	75,281	$	99,654	$	174,935	$	22,899




($ in thousands)	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
December 31, 2014
CRE:
Income producing	$	58,900	$	35,495	$	15,646	$	51,141	$	1,581
Construction	6,913		6,913		—		6,913		—
Land	13,291		2,838		5,622		8,460		1,906
C&I:
Commercial business	44,569		12,723		25,717		38,440		15,174
Trade finance	12,967		6,431		274		6,705		28
Residential:
Single-family	18,908		6,003		11,398		17,401		461
Multifamily	37,649		21,523		12,890		34,413		313
Consumer	1,259		1,151		108		1,259		1
Total	$	194,456	$	93,077	$	71,655	$	164,732	$	19,464

Schedule of average recorded investment and amount of interest income on non-PCI impaired loans

The following table presents the average recorded investment and the amount of interest income recognized on non-PCI impaired loans for the three and nine months ended September 30, 2015 and 2014:




	Three Months Ended September 30,								Nine Months Ended September 30,
	2015				2014				2015				2014
($ in thousands)	Average Recorded Investment		Recognized Interest Income ⁽¹⁾		Average Recorded Investment		Recognized Interest Income ⁽¹⁾		Average Recorded Investment		Recognized Interest Income ⁽¹⁾		Average Recorded Investment		Recognized Interest Income ⁽¹⁾
CRE:
Income producing	$	43,227	$	130	$	62,973	$	273	$	45,154	$	393	$	64,820	$	940
Construction	759		—		6,888		—		695		—		6,888		—
Land	3,957		10		8,581		75		4,796		30		8,676		224
C&I:
Commercial business	75,655		161		42,832		207		75,951		489		42,403		619
Trade finance	11,285		50		363		4		11,584		185		383		12
Residential:
Single-family	18,192		68		19,668		87		18,338		205		19,372		263
Multifamily	24,338		178		35,547		177		24,546		530		35,610		529
Consumer	1,248		12		1,264		12		1,253		35		1,259		35
Total impaired non-PCI loans	$	178,661	$	609	$	178,116	$	835	$	182,317	$	1,867	$	179,411	$	2,622


(1)	Includes interest recognized on accruing non-PCI TDRs. Interest payments received on nonaccrual non-PCI loans are reflected as a reduction of principal and not as interest income.

Summary of the activity in the allowance for credit losses

The following table presents a summary of the activity in the allowance for unfunded lending commitments for the three and nine months ended September 30, 2015 and 2014:




	Three Months Ended September 30,						Nine Months Ended September 30,
($ in thousands)	2015			2014			2015		2014
Beginning balance	$	19,741		$	12,326		$	12,712	$	11,282
(Reversal of) provision for unfunded lending commitments	(698		)	(623		)	6,331		421
Charge-offs	—			145			—		145
Ending balance	$	19,043		$	11,558		$	19,043	$	11,558

The following tables present a summary of the activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2015 and 2014:




	Non-PCI Loans
($ in thousands)	CRE			C&I			Residential			Consumer			Total			PCI Loans			Total
Three Months Ended September 30, 2015
Beginning balance	$	75,496		$	133,962		$	40,668		$	10,491		$	260,617		$	612		$	261,229
Provision for (reversal of) loan losses	2,333			11,221			(4,979		)	(70		)	8,505			(71		)	8,434
Charge-offs	(135		)	(7,187		)	(35		)	(123		)	(7,480		)	—			(7,480		)
Recoveries	83			933			1,158			73			2,247			—			2,247
Net (charge-offs) recoveries	(52		)	(6,254		)	1,123			(50		)	(5,233		)	—			(5,233		)
Ending balance	$	77,777		$	138,929		$	36,812		$	10,371		$	263,889		$	541		$	264,430




	Non-PCI Loans
($ in thousands)	CRE			C&I			Residential			Consumer			Total			PCI Loans			Total
Three Months Ended September 30, 2014
Beginning balance	$	60,895		$	131,057		$	45,949		$	11,889		$	249,790		$	1,558		$	251,348
Provision for (reversal of) loan losses	69			16,888			(839		)	574			16,692			(844		)	15,848
Charge-offs	(1,548		)	(16,027		)	(8		)	(134		)	(17,717		)	—			(17,717		)
Recoveries	259			3,342			95			3			3,699			—			3,699
Net (charge-offs) recoveries	(1,289		)	(12,685		)	87			(131		)	(14,018		)	—			(14,018		)
Ending balance	$	59,675		$	135,260		$	45,197		$	12,332		$	252,464		$	714		$	253,178




	Non-PCI Loans
($ in thousands)	CRE			C&I			Residential			Consumer			Total			PCI Loans			Total
Nine Months Ended September 30, 2015
Beginning balance	$	72,263		$	134,598		$	43,856		$	10,248		$	260,965		$	714		$	261,679
Provision for (reversal of) loan losses	5,739			13,883			(9,868		)	305			10,059			(173		)	9,886
Charge-offs	(1,486		)	(16,619		)	(782		)	(586		)	(19,473		)	—			(19,473		)
Recoveries	1,261			7,067			3,606			404			12,338			—			12,338
Net (charge-offs) recoveries	(225		)	(9,552		)	2,824			(182		)	(7,135		)	—			(7,135		)
Ending balance	$	77,777		$	138,929		$	36,812		$	10,371		$	263,889		$	541		$	264,430




	Non-PCI Loans
($ in thousands)	CRE			C&I			Residential			Consumer			Total			PCI Loans			Total
Nine Months Ended September 30, 2014
Beginning balance	$	70,154		$	115,184		$	50,716		$	11,352		$	247,406		$	2,269		$	249,675
(Reversal of) provision for loan losses	(9,354		)	44,398			(5,462		)	1,187			30,769			(1,032		)	29,737
Charge-offs	(2,761		)	(28,971		)	(352		)	(217		)	(32,301		)	(523		)	(32,824		)
Recoveries	1,636			4,649			295			10			6,590			—			6,590
Net charge-offs	(1,125		)	(24,322		)	(57		)	(207		)	(25,711		)	(523		)	(26,234		)
Ending balance	$	59,675		$	135,260		$	45,197		$	12,332		$	252,464		$	714		$	253,178

Allowance for loan losses and recorded investment in total loans receivable by portfolio segment, disaggregated by impairment methodology

The following tables present the Company’s allowance for loan losses and recorded investments in loans by portfolio segment as of September 30, 2015 and December 31, 2014 and disaggregated on the basis of the Company’s impairment methodology:




($ in thousands)	CRE		C&I		Residential		Consumer		Total
As of September 30, 2015
Allowance for loan losses
Individually evaluated for impairment	$	1,419	$	20,459	$	962	$	59	$	22,899
Collectively evaluated for impairment	76,358		118,470		35,850		10,312		240,990
Acquired with deteriorated credit quality	541		—		—		—		541
Ending balance	$	78,318	$	138,929	$	36,812	$	10,371	$	264,430

Recorded investment in loans
Individually evaluated for impairment	$	45,234	$	86,130	$	42,325	$	1,246	$	174,935
Collectively evaluated for impairment	7,081,211		8,467,410		4,077,074		1,808,273		21,433,968
Acquired with deteriorated credit quality ⁽¹⁾	583,559		65,616		375,770		25,060		1,050,005
Ending balance ⁽¹⁾	$	7,710,004	$	8,619,156	$	4,495,169	$	1,834,579	$	22,658,908

(1) Loans net of ASC 310-30 discount.




($ in thousands)	CRE		C&I		Residential		Consumer		Total
As of December 31, 2014
Allowance for loan losses
Individually evaluated for impairment	$	3,487	$	15,202	$	774	$	1	$	19,464
Collectively evaluated for impairment	68,776		119,396		43,082		10,247		241,501
Acquired with deteriorated credit quality	714		—		—		—		714
Ending balance	$	72,977	$	134,598	$	43,856	$	10,248	$	261,679

Recorded investment in loans
Individually evaluated for impairment	$	66,514	$	45,145	$	51,814	$	1,259	$	164,732
Collectively evaluated for impairment	6,035,702		7,942,436		4,779,465		1,482,697		20,240,300
Acquired with deteriorated credit quality ⁽¹⁾	717,297		89,620		485,410		29,786		1,322,113
Ending balance ⁽¹⁾	$	6,819,513	$	8,077,201	$	5,316,689	$	1,513,742	$	21,727,145

(1) Loans net of ASC 310-30 discount.

Summary of changes in the accretable yield for the PCI loans

The following table presents the changes in the accretable yield for the PCI loans for the three and nine months ended September 30, 2015 and 2014:




	Three Months Ended September 30,						Nine Months Ended September 30,
($ in thousands)	2015			2014			2015			2014
Beginning balance	$	271,862		$	392,894		$	311,688		$	461,545
Addition	—			—			—			6,745
Accretion	(30,608		)	(52,524		)	(84,537		)	(180,093		)
Changes in expected cash flows	1,518			11,232			15,621			63,405
Ending balance	$	242,772		$	351,602		$	242,772		$	351,602

Summary of the FDIC indemnification asset/net payable to the FDIC

The following table presents a summary of the FDIC indemnification asset/net payable to the FDIC for the three and nine months ended September 30, 2015 and 2014:




	Three Months Ended September 30,						Nine Months Ended September 30,
($ in thousands)	2015			2014			2015			2014
Beginning balance	$	(105,054	)	$	(24,337	)	$	(96,106	)	$	74,708
Amortization	(709		)	(28,175		)	(3,508		)	(85,968		)
Reductions ⁽¹⁾	(391		)	(5,676		)	(1,544		)	(31,629		)
Estimate of FDIC repayment ⁽²⁾	4,685			(6,272		)	(311		)	(21,571		)
Ending balance	$	(101,469	)	$	(64,460	)	$	(101,469	)	$	(64,460	)


(1)	Reductions relate to charge-offs, partial prepayments, loan payoffs and loan sales which result in a corresponding reduction of the indemnification asset.


(2)	Represents the change in the calculated estimate the Company will be required to pay the FDIC at the end of the FDIC shared-loss agreements, due to lower thresholds of losses.