Covered Assets and Indemnification Asset (Tables)

3 Months Ended

Mar. 31, 2013

Covered Assets and Indemnification Asset [Abstract]

The following table presents the major types of covered loans as of March 31, 2013 and December 31, 2012:

(in thousands)



	March 31, 2013
	Evergreen		Rainier		Nevada Security		Total
Commercial real estate
Term & multifamily	$	68,604	$	190,245	$	99,828	$	358,677
Construction & development	3,792		614		6,003		10,409
Residential development	3,873		—		5,512		9,385
Commercial
Term	8,626		1,503		11,211		21,340
LOC & other	4,461		7,484		2,737		14,682
Residential
Mortgage	3,510		20,629		1,807		25,946
Home equity loans & lines	3,387		16,494		2,477		22,358
Consumer & other	1,487		3,769		28		5,284
Total	$	97,740	$	240,738	$	129,603	$	468,081
Allowance for covered loans							(18,221		)
Total							$	449,860



	December 31, 2012
	Evergreen		Rainier		Nevada Security		Total
Commercial real estate
Term & multifamily	$	72,888	$	199,685	$	105,436	$	378,009
Construction & development	4,941		637		6,133		11,711
Residential development	3,840		—		5,954		9,794
Commercial
Term	9,961		2,230		11,333		23,524
LOC & other	4,984		7,081		2,932		14,997
Residential
Mortgage	3,948		22,059		1,818		27,825
Home equity loans & lines	3,478		17,178		2,786		23,442
Consumer & other	1,855		4,143		53		6,051
Total	$	105,895	$	253,013	$	136,445	$	495,353
Allowance for covered loans							(18,275		)
Total							$	477,078

Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Accretable Yield Movement Schedule Roll Forward

The following table presents the changes in the accretable yield for the three months ended March 31, 2013 and 2012 for each respective acquired loan portfolio:

(in thousands)



	Three months ended March 31, 2013
	Evergreen			Rainier			Nevada Security			Total
Balance, beginning of period	$	34,567		$	102,468		$	46,353		$	183,388
Accretion to interest income	(4,139		)	(5,864		)	(4,194		)	(14,197		)
Disposals	(236		)	(1,363		)	(1,331		)	(2,930		)
Reclassifications from nonaccretable difference	1,412			142			1,805			3,359
Balance, end of period	$	31,604		$	95,383		$	42,633		$	169,620

(in thousands)



	Three months ended March 31, 2012
	Evergreen			Rainier			Nevada Security			Total
Balance, beginning of period	$	56,479		$	120,334		$	61,021		$	237,834
Accretion to interest income	(4,235		)	(7,709		)	(4,914		)	(16,858		)
Disposals	(1,097		)	(3,997		)	(270		)	(5,364		)
Reclassifications from nonaccretable difference	2,323			4,217			3,964			10,504
Balance, end of period	53,470			$	112,845		$	59,801		$	226,116

The following table summarizes activity related to the allowance for covered loan and lease losses by covered loan portfolio segment for the three months ended March 31, 2013 and 2012, respectively:

(in thousands)



	Three months ended March 31, 2013
	Commercial									Consumer
	Real Estate			Commercial			Residential			& Other			Total
Balance, beginning of period	$	12,129		$	4,980		$	804		$	362		$	18,275
Charge-offs	(261		)	(328		)	(50		)	(178		)	(817		)
Recoveries	295			164			37			35			531
Provision (recapture)	211			51			(106		)	76			232
Balance, end of period	$	12,374		$	4,867		$	685		$	295		$	18,221

(in thousands)



	Three months ended March 31, 2012
	Commercial									Consumer
	Real Estate			Commercial			Residential			& Other			Total
Balance, beginning of period	$	8,939		$	3,964		$	991		$	426		$	14,320
Charge-offs	(931		)	(508		)	(303		)	(478		)	(2,220		)
Recoveries	337			169			32			28			566
Provision	(47		)	(350		)	20			346			(31		)
Balance, end of period	$	8,298		$	3,275		$	740		$	322		$	12,635

Allowance And Recorded Investment By Covered Loan Portfolio

The following table presents the allowance and recorded investment in covered loans by portfolio segment as of March 31, 2013 and 2012:

(in thousands)



	March 31, 2013
	Commercial						Consumer
	Real Estate		Commercial		Residential		& Other		Total
Allowance for covered loans and leases:
Loans acquired with deteriorated credit quality (1)	$	11,985	$	4,529	$	636	$	249	$	17,399
Collectively evaluated for impairment (2)	389		338		49		46		822
Total	$	12,374	$	4,867	$	685	$	295	$	18,221
Covered loans and leases:
Loans acquired with deteriorated credit quality (1)	$	375,531	$	23,080	$	43,338	$	2,779	$	444,728
Collectively evaluated for impairment (2)	2,940		12,942		4,966		2,505		23,353
Total	$	378,471	$	36,022	$	48,304	$	5,284	$	468,081



	March 31, 2012
	Commercial						Consumer
	Real Estate		Commercial		Residential		& Other		Total
Allowance for covered loans and leases:
Loans acquired with deteriorated credit quality (1)	$	7,765	$	2,717	$	700	$	281	$	11,463
Collectively evaluated for impairment (2)	533		558		40		41		1,172
Total	$	8,298	$	3,275	$	740	$	322	$	12,635
Covered loans and leases:
Loans acquired with deteriorated credit quality (1)	$	485,058	$	34,311	$	54,305	$	4,672	$	578,346
Collectively evaluated for impairment (2)	2,801		17,480		4,647		2,540		27,468
Total	$	487,859	$	51,791	$	58,952	$	7,212	$	605,814

(1) In accordance with ASC 310-30, the valuation allowance is netted against the carrying value of the covered loan and lease balance.

(2) The allowance on covered loan and lease losses includes an allowance on covered loan advances on acquired loans subsequent to acquisition.

Internal Risk Rating By Covered Loans Class

The following table summarizes our internal risk rating grouping by covered loans, net as of March 31, 2013 and December 31, 2012:

(in thousands)



	March 31, 2013
			Special
	Pass/Watch		Mention		Substandard		Doubtful		Loss		Total
Commercial real estate
Term & multifamily	$	222,933	$	48,419	$	68,478	$	10,493	$	—	$	350,323
Construction & development	1,817		—		4,937		1,322		—		8,076
Residential development	—		383		6,097		1,219		—		7,699
Commercial
Term	7,742		3,418		4,444		1,980		—		17,584
LOC & other	11,552		364		700		955		—		13,571
Residential
Mortgage	25,741		—		—		—		—		25,741
Home equity loans & lines	21,727		—		150		—		—		21,877
Consumer & other	4,989		—		—		—		—		4,989
Total	$	296,501	$	52,584	$	84,806	$	15,969	$	—	$	449,860



	December 31, 2012
			Special
	Pass/Watch		Mention		Substandard		Doubtful		Loss		Total
Construction & development
Term & multifamily	$	243,723	$	47,880	$	62,811	$	14,925	$	—	$	369,339
Construction & development	1,792		195		4,315		3,386		—		9,688
Residential development	—		391		6,658		1,309		—		8,358
Commercial
Term	9,020		3,401		4,986		2,021		—		19,428
LOC & other	11,498		354		1,080		1,181		—		14,113
Residential
Mortgage	27,596		—		—		—		—		27,596
Home equity loans & lines	22,790		—		77		—		—		22,867
Consumer & other	5,689		—		—		—		—		5,689
Total	$	322,108	$	52,221	$	79,927	$	22,822	$	—	$	477,078

Summary Of Activity In Covered Other Real Estate Owned

The following table summarizes the activity related to the covered OREO for the three months ended March 31, 2013 and 2012:

(in thousands)



	Three months ended
	March 31,
	2013			2012
Balance, beginning of period	$	10,374		$	19,491
Additions to covered OREO	1,741			784
Dispositions of covered OREO	(3,665		)	(4,582		)
Valuation adjustments in the period	(554		)	(2,906		)
Balance, end of period	$	7,896		$	12,787

Summary Of Activity Related To The FDIC Indemnification Assset

The following table summarizes the activity related to the FDIC indemnification asset for each respective acquired portfolio for the three months ended March 31, 2013 and 2012:

(in thousands)



	Three months ended March 31, 2013
	Evergreen			Rainier			Nevada Security			Total
Balance, beginning of period	$	14,876		$	15,110		$	22,812		$	52,798
Change in FDIC indemnification asset	(1,238		)	(1,568		)	(2,267		)	(5,073		)
Transfers to due from FDIC and other	(473		)	(513		)	(693		)	(1,679		)
Balance, end of period	$	13,165		$	13,029		$	19,852		$	46,046

(in thousands)



	Three months ended March 31, 2012
	Evergreen			Rainier			Nevada Security			Total
Balance, beginning of period	$	28,547		$	28,272		$	34,270		$	91,089
Change in FDIC indemnification asset	(1,847		)	(645		)	647			(1,845		)
Transfers to due from FDIC and other	(1,849		)	(3,265		)	(5,713		)	(10,827		)
Balance, end of period	$	24,851		$	24,362		$	29,204		$	78,417