LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 2016

Loans and Leases Receivable Disclosure [Abstract]

Schedule of 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, 2016 and December 31, 2015:




($ in thousands)	September 30, 2016									December 31, 2015
($ in thousands)	Non-PCI Loans			PCI Loans ⁽¹⁾			Total ⁽¹⁾			Non-PCI Loans			PCI Loans ⁽¹⁾			Total ⁽¹⁾
CRE:
Income producing	$	7,387,777		$	392,998		$	7,780,775		$	6,937,199		$	541,275		$	7,478,474
Construction	600,803			—			600,803			436,776			1,895			438,671
Land	130,989			2,512			133,501			187,409			6,195			193,604
Total CRE	8,119,569			395,510			8,515,079			7,561,384			549,365			8,110,749
C&I:
Commercial business	8,640,569			42,873			8,683,442			8,155,991			57,906			8,213,897
Trade finance	674,591			12			674,603			787,800			1,310			789,110
Total C&I	9,315,160			42,885			9,358,045			8,943,791			59,216			9,003,007
Residential:
Single-family	3,201,245			150,622			3,351,867			2,877,286			189,633			3,066,919
Multifamily	1,311,858			108,268			1,420,126			1,374,718			148,277			1,522,995
Total residential	4,513,103			258,890			4,771,993			4,252,004			337,910			4,589,914
Consumer	2,059,178			20,296			2,079,474			1,931,828			24,263			1,956,091
Total loans	$	24,007,010		$	717,581		$	24,724,591		$	22,689,007		$	970,754		$	23,659,761
Unearned fees, premiums, and discounts, net	7,371			—			7,371			(16,013		)	—			(16,013		)
Allowance for loan losses	(255,656		)	(156		)	(255,812		)	(264,600		)	(359		)	(264,959		)
Loans, net	$	23,758,725		$	717,425		$	24,476,150		$	22,408,394		$	970,395		$	23,378,789


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

Summary of credit risk rating for non-PCI and PCI loans by portfolio segment

The following tables present the credit risk rating for non-PCI loans by portfolio segment as of September 30, 2016 and December 31, 2015:




	September 30, 2016
($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Total Non-PCI Loans
CRE:
Income producing	$	7,175,508	$	28,052	$	184,217	$	—	$	7,387,777
Construction	595,106		5,697		—		—		600,803
Land	117,194		—		13,785		10		130,989
C&I:
Commercial business	8,263,325		132,512		228,368		16,364		8,640,569
Trade finance	640,016		18,524		14,115		1,936		674,591
Residential:
Single-family	3,176,832		7,161		17,252		—		3,201,245
Multifamily	1,264,586		—		47,272		—		1,311,858
Consumer	2,048,988		3,879		6,311		—		2,059,178
Total	$	23,281,555	$	195,825	$	511,320	$	18,310	$	24,007,010




	December 31, 2015
($ in thousands)	Pass/Watch		Special Mention		Substandard		Doubtful		Total Non-PCI Loans
CRE:
Income producing	$	6,672,951	$	59,309	$	204,939	$	—	$	6,937,199
Construction	435,112		1,194		470		—		436,776
Land	172,189		—		15,220		—		187,409
C&I:
Commercial business	7,794,735		201,280		135,449		24,527		8,155,991
Trade finance	750,144		13,812		23,844		—		787,800
Residential:
Single-family	2,841,722		8,134		27,430		—		2,877,286
Multifamily	1,317,550		2,918		54,250		—		1,374,718
Consumer	1,926,418		883		4,527		—		1,931,828
Total	$	21,910,821	$	287,530	$	466,129	$	24,527	$	22,689,007

The following tables present the credit risk rating for PCI loans by portfolio segment as of September 30, 2016 and December 31, 2015:




	September 30, 2016
($ in thousands)	Pass/Watch		Special Mention		Substandard		Total PCI Loans
CRE:
Income producing	$	333,342	$	3,474	$	56,182	$	392,998
Construction	—		—		—		—
Land	2,134		—		378		2,512
C&I:
Commercial business	34,023		4,590		4,260		42,873
Trade finance	12		—		—		12
Residential:
Single-family	147,768		1,216		1,638		150,622
Multifamily	93,379		—		14,889		108,268
Consumer	18,795		317		1,184		20,296
Total ⁽¹⁾	$	629,453	$	9,597	$	78,531	$	717,581




	December 31, 2015
($ in thousands)	Pass/Watch		Special Mention		Substandard		Total PCI Loans
CRE:
Income producing	$	440,100	$	4,987	$	96,188	$	541,275
Construction	—		—		1,895		1,895
Land	4,285		—		1,910		6,195
C&I:
Commercial business	52,212		819		4,875		57,906
Trade finance	1,310		—		—		1,310
Residential:
Single-family	184,092		1,293		4,248		189,633
Multifamily	130,770		—		17,507		148,277
Consumer	23,121		452		690		24,263
Total ⁽¹⁾	$	835,890	$	7,551	$	127,313	$	970,754


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

Schedule of aging analysis on non-PCI loans

The following tables present the aging analysis on non-PCI loans as of September 30, 2016 and December 31, 2015:




	September 30, 2016
($ 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
CRE:
Income producing	$	99	$	930	$	1,029	$	16,164	$	12,920	$	29,084	$	7,357,664	$	7,387,777
Construction	—		—		—		—		—		—		600,803		600,803
Land	—		—		—		5,706		10		5,716		125,273		130,989
C&I:
Commercial business	12,667		3,871		16,538		44,514		17,783		62,297		8,561,734		8,640,569
Trade finance	—		—		—		—		1,936		1,936		672,655		674,591
Residential:
Single-family	7,116		1,557		8,673		2,302		3,483		5,785		3,186,787		3,201,245
Multifamily	4,642		382		5,024		6,743		6,804		13,547		1,293,287		1,311,858
Consumer	1,408		1,086		2,494		121		3,390		3,511		2,053,173		2,059,178
Total	$	25,932	$	7,826	$	33,758	$	75,550	$	46,326	$	121,876	$	23,851,376	$	24,007,010




	December 31, 2015
($ 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
CRE:
Income producing	$	3,465	$	25,256	$	28,721	$	11,359	$	17,870	$	29,229	$	6,879,249	$	6,937,199
Construction	—		—		—		14		—		14		436,762		436,776
Land	1,124		—		1,124		277		406		683		185,602		187,409
C&I:
Commercial business	1,992		1,185		3,177		50,726		14,009		64,735		8,088,079		8,155,991
Trade finance	—		—		—		—		—		—		787,800		787,800
Residential:
Single-family	7,657		2,927		10,584		92		8,634		8,726		2,857,976		2,877,286
Multifamily	6,320		981		7,301		6,486		9,758		16,244		1,351,173		1,374,718
Consumer	2,078		209		2,287		233		1,505		1,738		1,927,803		1,931,828
Total	$	22,636	$	30,558	$	53,194	$	69,187	$	52,182	$	121,369	$	22,514,444	$	22,689,007

Summary of additions and modifications to non-PCI troubled debt restructurings

The following tables present the additions to non-PCI TDRs for the three and nine months ended September 30, 2016 and 2015:




	Loans Modified as TDRs During the Three Months Ended September 30,
($ in thousands)	2016							2015
($ in thousands)	Number of Loans	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment ⁽¹⁾		Financial Impact ⁽²⁾		Number of Loans	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	$	493	$	459	$	93	3	$	4,596	$	4,423	$	1,229




	Loans Modified as TDRs During the Nine Months Ended September 30,
($ in thousands)	2016							2015
($ in thousands)	Number of Loans	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment ⁽¹⁾		Financial Impact ⁽²⁾		Number of Loans	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment ⁽¹⁾		Financial Impact ⁽²⁾
CRE:
Income producing	3	$	15,899	$	15,722	$	43	2	$	1,279	$	1,209	$	—
Land	1	$	5,522	$	5,226	$	—	2	$	2,227	$	881	$	102
C&I:
Commercial business	8	$	22,182	$	9,088	$	2,711	16	$	42,686	$	35,365	$	6,726
Trade finance	2	$	7,901	$	3,025	$	—	—	$	—	$	—	$	—
Residential:
Single-family	2	$	1,071	$	1,058	$	—	1	$	281	$	279	$	2
Consumer:	1	$	344	$	335	$	1	—	$	—	$	—	$	—


(1)	Includes subsequent payments after modification and reflects the balance as of September 30, 2016 and 2015.


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

The following tables present the non-PCI TDR modifications for the three and nine months ended September 30, 2016 and 2015 by modification type:




($ in thousands)	Modification Type
	2016										2015
	Principal ⁽¹⁾		Interest Rate Reduction		Interest Deferments		Other		Total		Principal ⁽¹⁾		Principal and Interest ⁽²⁾		Interest Deferments		Other		Total
Three Months Ended September 30,
CRE	$	—	$	—	$	—	$	—	$	—	$	—	$	788	$	—	$	403	$	1,191
C&I	427		—		32		—		459		4,423		—		—		—		4,423
Total	$	427	$	—	$	32	$	—	$	459	$	4,423	$	788	$	—	$	403	$	5,614




($ in thousands)	Modification Type
	2016										2015
	Principal ⁽¹⁾		Interest Rate Reduction		Interest Deferments		Other		Total		Principal⁽¹⁾		Principal and Interest ⁽²⁾		Interest Deferments		Other		Total
Nine Months Ended September 30,
CRE	$	19,800	$	—	$	—	$	1,148	$	20,948	$	—	$	1,593	$	—	$	497	$	2,090
C&I	10,193		1,288		32		600		12,113		17,241		18,124		—		—		35,365
Residential	267		791		—		—		1,058		279		—		—		—		279
Consumer	335		—		—		—		335		—		—		—		—		—
Total	$	30,595	$	2,079	$	32	$	1,748	$	34,454	$	17,520	$	19,717	$	—	$	497	$	37,734


(1)	Principal modification includes forbearance payments, term extensions and principal deferments that modify the terms of the loan from principal and interest payments to interest payments only.


(2)	Principal and interest modification includes principal and interest deferments or reductions.

The following table presents information for loans modified as TDRs within the previous 12 months that have subsequently defaulted during the three and nine months ended September 30, 2016 and 2015, and are still in default at period end:




	Loans Modified as TDRs that Subsequently Defaulted During the Three Months Ended September 30,
	2016			2015
($ in thousands)	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
CRE:
Income producing	1	$	995	1	$	2,088




	Loans Modified as TDRs that Subsequently Defaulted During the Nine Months Ended September 30,
	2016			2015
($ in thousands)	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
CRE:
Income producing	1	$	995	1	$	2,088
C&I:
Commercial business	2	$	113	—	$	—

Summary of non-PCI impaired loans

The following tables present information on impaired non-PCI loans as of September 30, 2016 and December 31, 2015:




	September 30, 2016
($ in thousands)	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
CRE:
Income producing	$	59,227	$	31,493	$	19,703	$	51,196	$	507
Construction	—		—		—		—		—
Land	6,886		5,226		1,081		6,307		72
C&I:
Commercial business	109,416		28,316		53,453		81,769		3,798
Trade finance	6,080		4,361		655		5,016		3
Residential:
Single-family	14,825		1,842		11,439		13,281		310
Multifamily	22,894		15,649		5,208		20,857		217
Consumer	1,556		—		1,556		1,556		43
Total	$	220,884	$	86,887	$	93,095	$	179,982	$	4,950




	December 31, 2015
($ in thousands)	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
CRE:
Income producing	$	47,043	$	24,347	$	15,720	$	40,067	$	3,148
Construction	66		—		14		14		1
Land	1,537		632		683		1,315		118
C&I:
Commercial business	81,720		31,045		40,111		71,156		15,993
Trade finance	10,675		—		10,675		10,675		95
Residential:
Single-family	16,486		4,401		10,611		15,012		584
Multifamily	25,634		16,944		6,783		23,727		339
Consumer	1,240		—		1,240		1,240		60
Total	$	184,401	$	77,369	$	85,837	$	163,206	$	20,338

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

The following table presents the average recorded investment and interest income recognized on non-PCI impaired loans during the three and nine months ended September 30, 2016 and 2015:




($ in thousands)	Three Months Ended September 30,								Nine Months Ended September 30,
	2016				2015				2016				2015
	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	$	52,020	$	464	$	43,227	$	130	$	52,130	$	1,368	$	45,154	$	393
Construction	—		—		759		—		—		—		695		—
Land	6,562		9		3,957		10		6,721		26		4,796		30
C&I:
Commercial business	91,015		258		75,655		161		92,531		648		75,951		489
Trade finance	9,004		33		11,285		50		10,028		166		11,584		185
Residential:
Single-family	13,410		72		18,192		68		13,489		220		18,338		205
Multifamily	20,594		77		24,338		178		20,654		231		24,546		530
Consumer	1,567		16		1,248		12		1,572		48		1,253		35
Total impaired non-PCI loans	$	194,172	$	929	$	178,661	$	609	$	197,125	$	2,707	$	182,317	$	1,867


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

Summary of activities in the allowance for credit losses

The following tables present a summary of activities in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2016 and 2015:




	Three Months Ended September 30, 2016
($ in thousands)	Non-PCI Loans															PCI Loans			Total
($ in thousands)	CRE			C&I			Residential			Consumer			Total			PCI Loans			Total
Beginning balance	$	78,102		$	148,427		$	31,561		$	8,421		$	266,511		$	257		$	266,768
(Reversal of) provision for loan losses	(6,598		)	18,548			309			(644		)	11,615			(101		)	11,514
Charge-offs	(309		)	(23,696		)	(29		)	(13		)	(24,047		)	—			(24,047		)
Recoveries	634			165			654			124			1,577			—			1,577
Net recoveries (charge-offs)	325			(23,531		)	625			111			(22,470		)	—			(22,470		)
Ending balance	$	71,829		$	143,444		$	32,495		$	7,888		$	255,656		$	156		$	255,812




	Three Months Ended September 30, 2015
($ in thousands)	Non-PCI Loans															PCI Loans			Total
($ in thousands)	CRE			C&I			Residential			Consumer			Total			PCI Loans			Total
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




	Nine Months Ended September 30, 2016
($ in thousands)	Non-PCI Loans															PCI Loans
($ in thousands)	CRE			C&I			Residential			Consumer			Total			PCI Loans			Total
Beginning balance	$	81,191		$	134,597		$	39,292		$	9,520		$	264,600		$	359		$	264,959
(Reversal of) provision for loan losses	(9,731		)	38,549			(7,679		)	(1,887		)	19,252			(203		)	19,049
Charge-offs	(504		)	(31,770		)	(166		)	(17		)	(32,457		)	—			(32,457		)
Recoveries	873			2,068			1,048			272			4,261			—			4,261
Net recoveries (charge-offs)	369			(29,702		)	882			255			(28,196		)	—			(28,196		)
Ending balance	$	71,829		$	143,444		$	32,495		$	7,888		$	255,656		$	156		$	255,812




	Nine Months Ended September 30, 2015
($ in thousands)	Non-PCI Loans															PCI Loans			Total
($ in thousands)	CRE			C&I			Residential			Consumer			Total			PCI Loans			Total
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

For further information on accounting policies and the methodology used to estimate the allowance for credit losses and loan charge-offs, please see Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements of the Company’s 2015 Form 10-K.

The following table presents a summary of activities in the allowance for unfunded credit reserves during the three and nine months ended September 30, 2016 and 2015:




($ in thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
($ in thousands)	2016			2015			2016			2015
Beginning balance	$	20,318		$	19,741		$	20,360		$	12,712
(Reversal of) provision for unfunded credit reserves	(1,989		)	(698		)	(2,031		)	6,331
Ending balance	$	18,329		$	19,043		$	18,329		$	19,043

Summary of allowance for loan losses and recorded investments by portfolio segment and impairment methodology

The following tables present the Company’s allowance for loan losses and recorded investments by portfolio segment and impairment methodology as of September 30, 2016 and December 31, 2015:




	September 30, 2016
($ in thousands)	CRE		C&I		Residential		Consumer		Total
Allowance for loan losses
Individually evaluated for impairment	$	579	$	3,801	$	527	$	43	$	4,950
Collectively evaluated for impairment	71,250		139,643		31,968		7,845		250,706
Acquired with deteriorated credit quality	148		3		5		—		156
Ending balance	$	71,977	$	143,447	$	32,500	$	7,888	$	255,812

Recorded investment in loans
Individually evaluated for impairment	$	57,503	$	86,785	$	34,138	$	1,556	$	179,982
Collectively evaluated for impairment	8,062,066		9,228,375		4,478,965		2,057,622		23,827,028
Acquired with deteriorated credit quality ⁽¹⁾	395,510		42,885		258,890		20,296		717,581
Ending balance ⁽¹⁾	$	8,515,079	$	9,358,045	$	4,771,993	$	2,079,474	$	24,724,591




	December 31, 2015
($ in thousands)	CRE		C&I		Residential		Consumer		Total
Allowance for loan losses
Individually evaluated for impairment	$	3,267	$	16,088	$	923	$	60	$	20,338
Collectively evaluated for impairment	77,924		118,509		38,369		9,460		244,262
Acquired with deteriorated credit quality	347		9		3		—		359
Ending balance	$	81,538	$	134,606	$	39,295	$	9,520	$	264,959

Recorded investment in loans
Individually evaluated for impairment	$	41,396	$	81,831	$	38,739	$	1,240	$	163,206
Collectively evaluated for impairment	7,519,988		8,861,960		4,213,265		1,930,588		22,525,801
Acquired with deteriorated credit quality ⁽¹⁾	549,365		59,216		337,910		24,263		970,754
Ending balance ⁽¹⁾	$	8,110,749	$	9,003,007	$	4,589,914	$	1,956,091	$	23,659,761


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

Summary of changes in accretable yield for PCI loans

The following table presents the changes in accretable yield for PCI loans for the three and nine months ended September 30, 2016 and 2015:




($ in thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
($ in thousands)	2016			2015			2016			2015
Beginning balance	$	166,777		$	271,862		$	214,907		$	311,688
Accretion	(14,827		)	(30,608		)	(53,510		)	(84,537		)
Changes in expected cash flows	311			1,518			(9,136		)	15,621
Ending balance	$	152,261		$	242,772		$	152,261		$	242,772