Non-Covered Loans and Leases

6 Months Ended

Jun. 30, 2014

Receivables [Abstract]

Non-Covered Loans and Leases

Note 4– Non-Covered Loans and Leases

The following table presents the major types of non-covered loans and leases, net as of June 30, 2014 and December 31, 2013, respectively: 

(in thousands)	June 30,		December 31,
	2014		2013
Commercial real estate
Non-owner occupied term, net	$	3,348,029	$	2,328,260
Owner occupied term, net	2,666,128		1,259,583
Multifamily, net	2,482,995		403,537
Construction & development, net	261,767		245,231
Residential development, net	91,690		88,413
Commercial
Term, net	1,104,206		770,845
LOC & other, net	1,322,167		987,360
Leases and equipment finance, net	463,784		361,591
Residential
Mortgage, net	1,958,597		597,201
Home equity loans & lines, net	799,171		264,269
Consumer & other, net	331,811		48,113
Total loans and leases, net of deferred fees and costs	$	14,830,345	$	7,354,403

The non-covered loan balances are net of net deferred loan costs of $13.5 million as of June 30, 2014 and net of net deferred loan fees of $495,000 at December 31, 2013. Net non-covered loans include discounts on acquired loans of $287.4 million and $3.3 million as of June 30, 2014 and December 31, 2013, respectively. As of June 30, 2014, non-covered loans totaling $8.6 billion were pledged to secure borrowings and available lines of credit.

Purchased loans and leases are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an allowance for loan and lease losses is not recorded at the acquisition date. Acquired loans are evaluated upon acquisition and classified as either purchased impaired or purchased non-impaired. Purchased impaired loans reflect credit deterioration since origination such that it is probable at acquisition that the Company will be unable to collect all contractually required payments. The outstanding contractual unpaid principal balance of non-covered purchased impaired loans, excluding purchase accounting adjustments, was $511.2 million and $35.1 million at June 30, 2014 and December 31, 2013, respectively. The carrying balance of non-covered purchased impaired loans was $402.5 million and $21.9 million at June 30, 2014 and December 31, 2013, respectively.

The following table presents the changes in the accretable yield for purchased impaired loans for the three and six months ended June 30, 2014 and 2013:

(in thousands)	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Balance, beginning of period	$	1,053		$	667		$	1,140		$	770
Additions	110,757			—			110,757			—
Accretion to interest income	(5,990		)	(73		)	(6,077		)	(151		)
Disposals	(315		)	(424		)	(315		)	(449		)
Reclassifications from nonaccretable difference	—			—			—			—
Balance, end of period	$	105,505		$	170		$	105,505		$	170