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Covered Assets and Indemnification Asset (Tables)
 9 Months Ended
Sep. 30, 2013
Covered Assets and Indemnification Asset [Abstract]  
Covered Loans
The following table presents the major types of covered loans as of September 30, 2013 and December 31, 2012: 
 
(in thousands) 
 
 
September 30, 2013
 
Evergreen
 
Rainier
 
Nevada Security
 
Total
Commercial real estate
 
 
 
 
 
 
 
Term & multifamily
$
58,522

 
$
168,193

 
$
88,714

 
$
315,429

Construction & development
3,770

 
—

 
4,161

 
7,931

Residential development
3,105

 
—

 
5,431

 
8,536

Commercial
 
 
 
 
 
 
 
Term
5,826

 
1,074

 
9,923

 
16,823

LOC & other
3,433

 
5,937

 
2,148

 
11,518

Residential
 
 
 
 
 
 
 
Mortgage
3,126

 
18,392

 
1,786

 
23,304

Home equity loans & lines
3,257

 
15,404

 
2,036

 
20,697

Consumer & other
1,023

 
3,710

 
30

 
4,763

Total
$
82,062

 
$
212,710

 
$
114,229

 
$
409,001

Allowance for covered loans
 
 
 
 
 
 
(11,918
)
Total
 
 
 
 
 
 
$
397,083

 
 
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 and nine months ended September 30, 2013 and 2012 for each respective acquired loan portfolio:  
 
(in thousands)
 
Three months ended September 30, 2013
 
Evergreen
 
Rainier
 
Nevada Security
 
Total
Balance, beginning of period
$
27,162

 
$
85,823

 
$
41,818

 
$
154,803

Accretion to interest income
(2,816
)
 
(5,221
)
 
(3,420
)
 
(11,457
)
Disposals
(1,148
)
 
(2,205
)
 
(373
)
 
(3,726
)
Reclassifications (to)/from nonaccretable difference
(325
)
 
3,664

 
(643
)
 
2,696

Balance, end of period
$
22,873

 
$
82,061

 
$
37,382

 
$
142,316

 
 
 
 
 
 
 
 
 
Three months ended September 30, 2012
 
Evergreen
 
Rainier
 
Nevada Security
 
Total
Balance, beginning of period
$
48,064

 
$
123,501

 
$
54,623

 
$
226,188

Accretion to interest income
(6,139
)
 
(8,361
)
 
(5,316
)
 
(19,816
)
Disposals
(1,989
)
 
(5,677
)
 
(1,650
)
 
(9,316
)
Reclassifications from nonaccretable difference
3,261

 
3,336

 
3,094

 
9,691

Balance, end of period
$
43,197

 
$
112,799

 
$
50,751

 
$
206,747


(in thousands) 
 
Nine months ended September 30, 2013
 
Evergreen
 
Rainier
 
Nevada Security
 
Total
Balance, beginning of period
$
34,567

 
$
102,468

 
$
46,353

 
$
183,388

Accretion to interest income
(9,879
)
 
(18,290
)
 
(11,872
)
 
(40,041
)
Disposals
(2,510
)
 
(5,529
)
 
(3,140
)
 
(11,179
)
Reclassifications from nonaccretable difference
695

 
3,412

 
6,041

 
10,148

Balance, end of period
22,873

 
$
82,061

 
$
37,382

 
$
142,316

 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2012
 
Evergreen
 
Rainier
 
Nevada Security
 
Total
Balance, beginning of period
$
56,479

 
$
120,333

 
$
61,021

 
$
237,833

Accretion to interest income
(14,918
)
 
(23,216
)
 
(14,924
)
 
(53,058
)
Disposals
(5,671
)
 
(14,363
)
 
(3,069
)
 
(23,103
)
Reclassifications from nonaccretable difference
7,307

 
30,045

 
7,723

 
45,075

Balance, end of period
$
43,197

 
$
112,799

 
$
50,751

 
$
206,747
Activity Related To Allowance For Covered Loan And Lease Losses By Covered Loan Portfolio
The following table summarizes activity related to the allowance for covered loan losses by covered loan portfolio segment for the three and nine months ended September 30, 2013 and 2012, respectively: 
 
(in thousands)  
 
Three months ended September 30, 2013
 
Commercial
 
 
 
 
 
Consumer
 
 
 
Real Estate
 
Commercial
 
Residential
 
& Other
 
Total
Balance, beginning of period
$
8,871

 
$
4,512

 
$
808

 
$
176

 
$
14,367

Charge-offs
(553
)
 
(406
)
 
(48
)
 
(88
)
 
(1,095
)
Recoveries
182

 
156

 
59

 
153

 
550

Recapture of provision
(1,466
)
 
(367
)
 
(16
)
 
(55
)
 
(1,904
)
Balance, end of period
$
7,034

 
$
3,895

 
$
803

 
$
186

 
$
11,918

 
 
 
 
 
 
 
 
 
 
 
Three months ended September 30, 2012
 
Commercial
 
 
 
 
 
Consumer
 
 
 
Real Estate
 
Commercial
 
Residential
 
& Other
 
Total
Balance, beginning of period
$
7,461

 
$
4,547

 
$
664

 
$
305

 
$
12,977

Charge-offs
(480
)
 
(450
)
 
(73
)
 
(45
)
 
(1,048
)
Recoveries
371

 
215

 
68

 
22

 
676

Provision (recapture)
1,884

 
990

 
79

 
(26
)
 
2,927

Balance, end of period
$
9,236

 
$
5,302

 
$
738

 
$
256

 
$
15,532


(in thousands)  
 
Nine months ended September 30, 2013
 
Commercial
 
 
 
 
 
Consumer
 
 
 
Real Estate
 
Commercial
 
Residential
 
& Other
 
Total
Balance, beginning of period
$
12,129

 
$
4,980

 
$
804

 
$
362

 
$
18,275

Charge-offs
(1,321
)
 
(1,219
)
 
(156
)
 
(420
)
 
(3,116
)
Recoveries
669

 
428

 
185

 
221

 
1,503

(Recapture) provision
(4,443
)
 
(294
)
 
(30
)
 
23

 
(4,744
)
Balance, end of period
$
7,034

 
$
3,895

 
$
803

 
$
186

 
$
11,918

 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2012
 
Commercial
 
 
 
 
 
Consumer
 
 
 
Real Estate
 
Commercial
 
Residential
 
& Other
 
Total
Balance, beginning of period
$
8,939

 
$
3,964

 
$
991

 
$
426

 
$
14,320

Charge-offs
(2,570
)
 
(1,257
)
 
(510
)
 
(578
)
 
(4,915
)
Recoveries
1,012

 
596

 
147

 
70

 
1,825

Provision
1,855

 
1,999

 
110

 
338

 
4,302

Balance, end of period
$
9,236

 
$
5,302

 
$
738

 
$
256

 
$
15,532
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 September 30, 2013 and 2012: 
 
(in thousands)  
 
September 30, 2013
 
Commercial
 
 
 
 
 
Consumer
 
 
 
Real Estate
 
Commercial
 
Residential
 
& Other
 
Total
Allowance for covered loans:
 
 
 
 
 
 
 
 
 
Loans acquired with deteriorated credit quality (1)
$
6,648

 
$
3,691

 
$
752

 
$
135

 
$
11,226

Collectively evaluated for impairment (2)
386

 
204

 
51

 
51

 
692

Total
$
7,034

 
$
3,895

 
$
803

 
$
186

 
$
11,918

Covered loans:
 
 
 
 
 
 
 
 
 
Loans acquired with deteriorated credit quality (1)
$
329,044

 
$
17,799

 
$
38,887

 
$
2,000

 
$
387,730

Collectively evaluated for impairment (2)
2,852

 
10,542

 
5,114

 
2,763

 
21,271

Total
$
331,896

 
$
28,341

 
$
44,001

 
$
4,763

 
$
409,001

 
 
September 30, 2012
 
Commercial
 
 
 
 
 
Consumer
 
 
 
Real Estate
 
Commercial
 
Residential
 
& Other
 
Total
Allowance for covered loans:
 
 
 
 
 
 
 
 
 
Loans acquired with deteriorated credit quality (1)
$
8,662

 
$
4,785

 
$
694

 
$
211

 
$
14,352

Collectively evaluated for impairment (2)
574

 
517

 
44

 
45

 
1,180

Total
$
9,236

 
$
5,302

 
$
738

 
$
256

 
$
15,532

Covered loans:
 
 
 
 
 
 
 
 
 
Loans acquired with deteriorated credit quality (1)
$
424,547

 
$
28,141

 
$
48,838

 
$
3,699

 
$
505,225

Collectively evaluated for impairment (2)
2,942

 
15,097

 
4,591

 
2,722

 
25,352

Total
$
427,489

 
$
43,238

 
$
53,429

 
$
6,421

 
$
530,577

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

(2) The allowance on covered loan 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 September 30, 2013 and December 31, 2012: 
 
(in thousands) 
 
 
September 30, 2013
 
 
 
Special
 
 
 
 
 
 
 
 
 
Pass/Watch
 
Mention
 
Substandard
 
Doubtful
 
Loss
 
Total
Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
Term & multifamily
$
201,171

 
$
38,536

 
$
70,787

 
$
241

 
$
—

 
$
310,735

Construction & development
1,153

 
—

 
5,501

 
—

 
—

 
6,654

Residential development
504

 
599

 
5,764

 
603

 
—

 
7,470

Commercial
 
 
 
 
 
 
 
 
 
 
 
Term
4,857

 
3,027

 
5,566

 
415

 
—

 
13,865

LOC & other
8,054

 
1,298

 
1,185

 
48

 
—

 
10,585

Residential
 
 
 
 
 
 
 
 
 
 
 
Mortgage
23,161

 
—

 
—

 
—

 
—

 
23,161

Home equity loans & lines
19,921

 
—

 
116

 
—

 
—

 
20,037

Consumer & other
4,576

 
—

 
—

 
—

 
—

 
4,576

Total
$
263,397

 
$
43,460

 
$
88,919

 
$
1,307

 
$
—

 
$
397,083


 
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 and nine months ended September 30, 2013 and 2012: 
 
(in thousands)  
 
Three months ended
 
Nine months ended
 
September 30,
 
September 30,
 
2013
 
2012
 
2013
 
2012
Balance, beginning of period
$
3,484

 
$
9,191

 
$
10,374

 
$
19,491

Additions to covered OREO
—

 
1,881

 
2,554

 
3,227

Dispositions of covered OREO
(480
)
 
(2,192
)
 
(9,245
)
 
(10,492
)
Valuation adjustments in the period
(24
)
 
(769
)
 
(703
)
 
(4,115
)
Balance, end of period
$
2,980

 
$
8,111

 
$
2,980

 
$
8,111
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 and nine months ended September 30, 2013 and 2012: 

(in thousands) 
 
Three months ended September 30, 2013
 
Evergreen
 
Rainier
 
Nevada Security
 
Total
Balance, beginning of period
$
11,648

 
$
10,467

 
$
14,148

 
$
36,263

Change in FDIC indemnification asset
(3,661
)
 
(707
)
 
(2,106
)
 
(6,474
)
Transfers to due from FDIC and other
(227
)
 
(37
)
 
(98
)
 
(362
)
Balance, end of period
$
7,760

 
$
9,723

 
$
11,944

 
$
29,427

 
 
 
 
 
 
 
 
 
Three months ended September 30, 2012
 
Evergreen
 
Rainier
 
Nevada Security
 
Total
Balance, beginning of period
$
22,301

 
$
20,571

 
$
25,933

 
$
68,805

Change in FDIC indemnification asset
(1,731
)
 
(2,887
)
 
(141
)
 
(4,759
)
Transfers to due from FDIC and other
(1,215
)
 
(944
)
 
(1,381
)
 
(3,540
)
Balance, end of period
$
19,355

 
$
16,740

 
$
24,411

 
$
60,506


(in thousands) 
 
Nine months ended September 30, 2013
 
Evergreen
 
Rainier
 
Nevada Security
 
Total
Balance, beginning of period
$
14,876

 
$
15,110

 
$
22,812

 
$
52,798

Change in FDIC indemnification asset
(6,359
)
 
(4,479
)
 
(9,003
)
 
(19,841
)
Transfers to due from FDIC and other
(757
)
 
(908
)
 
(1,865
)
 
(3,530
)
Balance, end of period
$
7,760

 
$
9,723

 
$
11,944

 
$
29,427

 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2012
 
Evergreen
 
Rainier
 
Nevada Security
 
Total
Balance, beginning of period
$
28,547

 
$
28,272

 
$
34,270

 
$
91,089

Change in FDIC indemnification asset
(5,830
)
 
(5,803
)
 
989

 
(10,644
)
Transfers to due from FDIC and other
(3,362
)
 
(5,729
)
 
(10,848
)
 
(19,939
)
Balance, end of period
$
19,355

 
$
16,740

 
$
24,411

 
$
60,506