LOANS AND LEASES

6 Months Ended

Jun. 30, 2013

LOANS AND LEASES

LOANS AND LEASES

NOTE 6—LOANS AND LEASES

        The Company's loan portfolio consists of (1) purchased credit-impaired ("PCI") loans and (2) non-purchased credit-impaired ("Non-PCI") loans. PCI loans represent acquired loans for which there is, at the acquisition date, evidence of credit deterioration since their origination and it is probable that we would be unable to collect all contractually required payments. Such loans are accounted for in accordance with ASC Subtopic 310-30, "Loans and Debt Securities Acquired with Deteriorated Credit Quality." Non-PCI loans are comprised of originated loans and acquired non-impaired loans for which there is no evidence of credit deterioration at their acquisition date and it is probable that we would be able to collect all contractually required payments. Originated loans are carried at the principal amount outstanding, net of unearned income. Unearned income is recognized as an adjustment to interest income over the contractual life of the loans using the effective interest method or taken into income when the related loans are paid off or sold. The purchase discount on acquired non-impaired loans is recognized as an adjustment to interest income over the contractual life of such loans using the effective interest method or taken into income when the related loans are paid off or sold.

        We further present our loans by "covered" and "non-covered" loan categories. Covered loans represent loans covered by loss sharing agreements with the FDIC for which we will be reimbursed for a substantial portion of any future losses under the terms of the agreements. Covered loans also include those loans acquired in the FCAL acquisition as FCB had acquired two failed banks from the FDIC for which the loss sharing agreements with the FDIC remain in effect. Non-covered loans and leases represent loans and leases not covered by FDIC loss sharing agreements.

        The following table summarizes the composition of our loan portfolio as of the dates indicated:

	June 30, 2013									December 31, 2012
	Non-PCI Loans and Leases			PCI Loans			Total			Non-PCI Loans and Leases			PCI Loans			Total
	(In thousands)
Non-covered loans and leases	$	3,819,576		$	19,639		$	3,839,215		$	3,049,505		$	—		$	3,049,505
Covered loans		106,654			474,750			581,404			25,442			517,885			543,327
Total gross loans and leases		3,926,230			494,389			4,420,619			3,074,947			517,885			3,592,832
Unearned income		(933	)		—			(933	)		(2,535	)		—			(2,535	)
Total loans and leases, net of unearned income		3,925,297			494,389			4,419,686			3,072,412			517,885			3,590,297
Allowance for loan and lease losses:
Non-covered loans and leases		(63,246	)		—			(63,246	)		(65,899	)		—			(65,899	)
Covered loans		—			(27,397	)		(27,397	)		—			(26,069	)		(26,069	)
Total allowance for loan and lease losses		(63,246	)		(27,397	)		(90,643	)		(65,899	)		(26,069	)		(91,968	)
Total net loans and leases	$	3,862,051		$	466,992		$	4,329,043		$	3,006,513		$	491,816		$	3,498,329

        The following table presents the composition of our gross loans by portfolio segment as of the dates indicated:

	June 30, 2013						December 31, 2012
	Non-PCI Loans and Leases		PCI Loans		Total		Non-PCI Loans and Leases		PCI Loans		Total
	(In thousands)
Non-Covered Loans and Leases
Real estate mortgage	$	2,477,066	$	18,298	$	2,495,364	$	1,917,670	$	—	$	1,917,670
Real estate construction		185,888		1,305		187,193		129,959		—		129,959
Commercial		898,973		—		898,973		787,775		—		787,775
Leases		216,089		—		216,089		174,373		—		174,373
Consumer		25,487		36		25,523		22,487		—		22,487
Foreign		16,073		—		16,073		17,241		—		17,241
Total gross non-covered loans and leases	$	3,819,576	$	19,639	$	3,839,215	$	3,049,505	$	—	$	3,049,505
Covered Loans
Real estate mortgage	$	81,124	$	456,114	$	537,238	$	20,843	$	484,057	$	504,900
Real estate construction		11,888		14,654		26,542		—		24,645		24,645
Commercial		10,536		3,560		14,096		4,113		9,071		13,184
Consumer		3,106		422		3,528		486		112		598
Total gross covered loans	$	106,654	$	474,750	$	581,404	$	25,442	$	517,885	$	543,327
Total Loans and Leases
Real estate mortgage	$	2,558,190	$	474,412	$	3,032,602	$	1,938,513	$	484,057	$	2,422,570
Real estate construction		197,776		15,959		213,735		129,959		24,645		154,604
Commercial		909,509		3,560		913,069		791,888		9,071		800,959
Leases		216,089		—		216,089		174,373		—		174,373
Consumer		28,593		458		29,051		22,973		112		23,085
Foreign		16,073		—		16,073		17,241		—		17,241
Total gross loans and leases	$	3,926,230	$	494,389	$	4,420,619	$	3,074,947	$	517,885	$	3,592,832

        The following tables present a summary of the activity in the allowance for loan and lease losses on Non-PCI loans and leases and PCI loans by portfolio segment for the periods indicated:

	Three Months Ended June 30, 2013
	Real Estate Mortgage			Real Estate Construction		Commercial			Leases		Consumer			Foreign			Total Non-PCI			Total PCI			Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	37,265		$	3,300	$	21,053		$	2,006	$	1,494		$	98		$	65,216		$	29,303		$	94,519
Charge-offs		(3,237	)		—		(1,370	)		—		(27	)		—			(4,634	)		(64	)		(4,698	)
Recoveries		1,336			12		1,297			—		19			—			2,664			—			2,664
Provision (negative provision)		(3,560	)		120		3,185			90		181			(16	)		—			(1,842	)		(1,842	)
Balance, end of period	$	31,804		$	3,432	$	24,165		$	2,096	$	1,667		$	82		$	63,246		$	27,397		$	90,643

	Six Months Ended June 30, 2013
	Real Estate Mortgage			Real Estate Construction			Commercial			Leases			Consumer			Foreign			Total Non-PCI			Total PCI		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	38,700		$	3,221		$	20,661		$	1,493		$	1,726		$	98		$	65,899		$	26,069	$	91,968
Charge-offs		(3,559	)		—			(2,078	)		(114	)		(36	)		—			(5,787	)		—		(5,787	)
Recoveries		1,513			335			1,704			—			42			—			3,594			33		3,627
Provision (negative provision)		(4,850	)		(124	)		3,878			717			(65	)		(16	)		(460	)		1,295		835
Balance, end of period	$	31,804			3,432		$	24,165		$	2,096		$	1,667		$	82		$	63,246		$	27,397	$	90,643
Amount of the allowance applicable to loans and leases:
Individually evaluated for impairment	$	3,548		$	62		$	7,270		$	—		$	240		$	—		$	11,120
Collectively evaluated for impairment	$	28,256		$	3,370		$	16,895		$	2,096		$	1,427		$	82		$	52,126
Acquired with deteriorated credit quality																						$	27,397
Loans and Leases:
Ending balance	$	2,558,190		$	197,776		$	909,509		$	216,089		$	28,593		$	16,073		$	3,926,230		$	494,389	$	4,420,619
The ending balance of the loan and lease portfolio is composed of loans and leases:
Individually evaluated for impairment	$	96,293		$	14,966		$	23,031		$	244		$	698		$	—		$	135,232
Collectively evaluated for impairment	$	2,461,897		$	182,810		$	886,478		$	215,845		$	27,895		$	16,073		$	3,790,998
Acquired with deteriorated credit quality																						$	494,389

	Three Months Ended June 30, 2012
	Real Estate Mortgage			Real Estate Construction			Commercial			Leases		Consumer			Foreign			Total Non-PCI			Total PCI			Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	42,210		$	6,475		$	23,556		$	458	$	1,908		$	160		$	74,767		$	35,810		$	110,577
Charge-offs		(2,583	)		—			(1,352	)		—		(34	)		—			(3,969	)		(4,076	)		(8,045	)
Recoveries		43			14			190			—		16			—			263			—			263
Provision (negative provision)		2,566			(993	)		(415	)		40		(155	)		(43	)		1,000			(271	)		729
Balance, end of period	$	42,236		$	5,496		$	21,979		$	498	$	1,735		$	117		$	72,061		$	31,463		$	103,524

	Six Months Ended June 30, 2012
	Real Estate Mortgage			Real Estate Construction			Commercial			Leases		Consumer			Foreign			Total Non-PCI			Total PCI			Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	50,205		$	8,697		$	23,308		$	—	$	2,768		$	335		$	85,313		$	31,275		$	116,588
Charge-offs		(4,773	)		—			(2,223	)		—		(233	)		—			(7,229	)		(3,467	)		(10,696	)
Recoveries		372			24			1,014			—		47			20			1,477			—			1,477
Provision (negative provision)		(3,568	)		(3,225	)		(120	)		498		(847	)		(238	)		(7,500	)		3,655			(3,845	)
Balance, end of period	$	42,236		$	5,496		$	21,979		$	498	$	1,735		$	117		$	72,061		$	31,463		$	103,524
Amount of the allowance applicable to loans and leases:
Individually evaluated for impairment	$	6,221		$	1,197		$	6,363		$	—	$	255		$	—		$	14,036
Collectively evaluated for impairment	$	36,015		$	4,299		$	15,616		$	498	$	1,480		$	117		$	58,025
Acquired with deteriorated credit quality																					$	31,463
Loans and Leases:
Ending balance	$	1,850,162		$	129,107		$	707,566		$	153,793	$	17,689		$	17,017		$	2,875,334		$	611,967		$	3,487,301
The ending balance of the loan and lease portfolio is composed of loans and leases:
Individually evaluated for impairment	$	103,252		$	32,607		$	23,111		$	244	$	495		$	—		$	159,709
Collectively evaluated for impairment	$	1,746,910		$	96,500		$	684,455		$	153,549	$	17,194		$	17,017		$	2,715,625
Acquired with deteriorated credit quality																					$	611,967

• Loans and Leases, Excluding PCI Loans

        The following table presents the composition of loans and leases (excluding PCI loans), which we also refer to as Non-PCI loans and leases, by portfolio segment as of the dates indicated:

	June 30, 2013						December 31, 2012
	Amount			% of Total			Amount			% of Total
	(Dollars in thousands)
Real estate mortgage	$	2,558,190			65	%	$	1,938,513			63	%
Real estate construction		197,776			5			129,959			4
Commercial		909,509			23			791,888			25
Leases		216,089			6			174,373			6
Consumer		28,593			1			22,973			1
Foreign		16,073			—			17,241			1
Total gross Non-PCI loans and leases		3,926,230			100	%		3,074,947			100	%
Less:
Unearned income		(933	)					(2,535	)
Allowance for loan and lease losses		(63,246	)					(65,899	)
Total net Non-PCI loans and leases	$	3,862,051					$	3,006,513

        As of May 31, 2013, the fair value of the FCAL Non-PCI loans acquired was $1.0 billion, the related gross contractual amount was $1.3 billion, and the estimated contractual cash flows not expected to be collected was $34.4 million.

        The following table presents the credit risk rating categories for Non-PCI loans and leases by portfolio segment and class as of the dates indicated. Nonclassified loans and leases are those with a credit risk rating of either pass or special mention, while classified loans and leases are those with a credit risk rating of either substandard or doubtful.

	June 30, 2013						December 31, 2012
	Nonclassified		Classified		Total		Nonclassified		Classified		Total
	(In thousands)
Real estate mortgage:
Hospitality	$	186,728	$	5,685	$	192,413	$	168,489	$	12,655	$	181,144
SBA 504		49,826		5,765		55,591		48,372		5,786		54,158
Other		2,244,304		65,882		2,310,186		1,653,446		49,765		1,703,211
Total real estate mortgage		2,480,858		77,332		2,558,190		1,870,307		68,206		1,938,513
Real estate construction:
Residential		56,161		1,775		57,936		46,591		2,038		48,629
Commercial		131,417		8,423		139,840		77,503		3,827		81,330
Total real estate construction		187,578		10,198		197,776		124,094		5,865		129,959
Commercial:
Collateralized		499,198		25,842		525,040		442,293		14,802		457,095
Unsecured		98,856		2,890		101,746		67,133		2,905		70,038
Asset-based		249,834		4,247		254,081		235,075		4,355		239,430
SBA 7(a)		22,666		5,976		28,642		18,888		6,437		25,325
Total commercial		870,554		38,955		909,509		763,389		28,499		791,888
Leases		215,845		244		216,089		174,129		244		174,373
Consumer		27,141		1,452		28,593		21,733		1,240		22,973
Foreign		16,073		—		16,073		17,241		—		17,241
Total Non-PCI loans and leases	$	3,798,049	$	128,181	$	3,926,230	$	2,970,893	$	104,054	$	3,074,947

        In addition to our internal risk rating process, our federal and state banking regulators, as an integral part of their examination process, periodically review the Company's loan risk rating classifications. Our regulators may require the Company to recognize rating downgrades based on their judgments related to information available to them at the time of their examinations. Risk rating downgrades generally result in higher allowances for credit losses.

        The following tables present an aging analysis of our Non-PCI loans and leases by portfolio segment and class as of the dates indicated:

	June 30, 2013
	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Hospitality	$	—	$	—	$	—	$	—	$	192,413	$	192,413
SBA 504		—		929		1,836		2,765		52,826		55,591
Other		1,793		2,717		12,296		16,806		2,293,380		2,310,186
Total real estate mortgage		1,793		3,646		14,132		19,571		2,538,619		2,558,190
Real estate construction:
Residential		—		—		—		—		57,936		57,936
Commercial		—		555		—		555		139,285		139,840
Total real estate construction		—		555		—		555		197,221		197,776
Commercial:
Collateralized		1,277		422		6,877		8,576		516,464		525,040
Unsecured		131		975		1,390		2,496		99,250		101,746
Asset-based		—		—		—		—		254,081		254,081
SBA 7(a)		200		604		510		1,314		27,328		28,642
Total commercial		1,608		2,001		8,777		12,386		897,123		909,509
Leases		—		—		244		244		215,845		216,089
Consumer		104		—		—		104		28,489		28,593
Foreign		—		—		—		—		16,073		16,073
Total Non-PCI loans and leases	$	3,505	$	6,202	$	23,153	$	32,860	$	3,893,370	$	3,926,230

        At June 30, 2013 and December 31, 2012, the Company had no loans and leases (excluding PCI loans) that were greater than 90 days past due and still accruing interest. It is the Company's policy to discontinue accruing interest when principal or interest payments are past due 90 days or when, in the opinion of management, there is a reasonable doubt as to the collectability of a loan or lease in the normal course of business. At June 30, 2013, nonaccrual loans and leases totaled $51.7 million. Nonaccrual loans and leases include $4.7 million of loans 30 to 89 days past due and $23.9 million of current loans which have been placed on nonaccrual status based on management's judgment regarding their collectability.

	December 31, 2012
	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Hospitality	$	—	$	—	$	—	$	—	$	181,144	$	181,144
SBA 504		955		—		1,727		2,682		51,476		54,158
Other		4,098		54		3,271		7,423		1,695,788		1,703,211
Total real estate mortgage		5,053		54		4,998		10,105		1,928,408		1,938,513
Real estate construction:
Residential		—		—		—		—		48,629		48,629
Commercial		—		—		1,245		1,245		80,085		81,330
Total real estate construction		—		—		1,245		1,245		128,714		129,959
Commercial:
Collateralized		964		161		872		1,997		455,098		457,095
Unsecured		3		135		230		368		69,670		70,038
Asset-based		—		—		176		176		239,254		239,430
SBA 7(a)		281		547		1,271		2,099		23,226		25,325
Total commercial		1,248		843		2,549		4,640		787,248		791,888
Leases		225		132		244		601		173,772		174,373
Consumer		23		1		—		24		22,949		22,973
Foreign		—		—		—		—		17,241		17,241
Total Non-PCI loans and leases	$	6,549	$	1,030	$	9,036	$	16,615	$	3,058,332	$	3,074,947

        Nonaccrual loans totaled $41.8 million at December 31, 2012, including $4.2 million of loans 30 to 89 days past due and $28.6 million of current loans.

        The following table presents our nonaccrual and performing Non-PCI loans and leases by portfolio segment and class as of the dates indicated:

	June 30, 2013						December 31, 2012
	Nonaccrual		Performing		Total		Nonaccrual		Performing		Total
	(In thousands)
Real estate mortgage:
Hospitality	$	—	$	192,413	$	192,413	$	6,908	$	174,236	$	181,144
SBA 504		3,007		52,584		55,591		2,982		51,176		54,158
Other		26,093		2,284,093		2,310,186		16,585		1,686,626		1,703,211
Total real estate mortgage		29,100		2,529,090		2,558,190		26,475		1,912,038		1,938,513
Real estate construction:
Residential		834		57,102		57,936		1,057		47,572		48,629
Commercial		2,938		136,902		139,840		2,715		78,615		81,330
Total real estate construction		3,772		194,004		197,776		3,772		126,187		129,959
Commercial:
Collateralized		13,441		511,599		525,040		4,462		452,633		457,095
Unsecured		1,583		100,163		101,746		2,027		68,011		70,038
Asset-based		—		254,081		254,081		176		239,254		239,430
SBA 7(a)		3,052		25,590		28,642		4,181		21,144		25,325
Total commercial		18,076		891,433		909,509		10,846		781,042		791,888
Leases		244		215,845		216,089		244		174,129		174,373
Consumer		497		28,096		28,593		425		22,548		22,973
Foreign		—		16,073		16,073		—		17,241		17,241
Total Non-PCI loans and leases	$	51,689	$	3,874,541	$	3,926,230	$	41,762	$	3,033,185	$	3,074,947

        Nonaccrual loans and leases and performing restructured loans are considered impaired for reporting purposes. The following table presents the composition of our impaired loans and leases as of the dates indicated:

	June 30, 2013						December 31, 2012
	Nonaccrual Loans/Leases		Performing Restructured Loans		Total Impaired Loans/Leases		Nonaccrual Loans/Leases		Performing Restructured Loans		Total Impaired Loans/Leases
	(In thousands)
Real estate mortgage	$	29,100	$	67,193	$	96,293	$	26,475	$	80,723	$	107,198
Real estate construction		3,772		11,194		14,966		3,772		21,678		25,450
Commercial		18,076		4,955		23,031		10,846		3,684		14,530
Leases		244		—		244		244		—		244
Consumer		497		201		698		425		203		628
Total	$	51,689	$	83,543	$	135,232	$	41,762	$	106,288	$	148,050

        The following tables present information regarding our impaired loans and leases (excluding PCI loans) by portfolio segment and class for the dates indicated:

	June 30, 2013						December 31, 2012
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Hospitality	$	8,779	$	9,621	$	378	$	8,954	$	9,640	$	2,396
SBA 504		1,659		1,659		234		1,676		1,676		324
Other		51,327		51,908		2,936		58,364		60,262		5,107
Real estate construction:
Residential		393		393		54		1,303		1,330		165
Commercial		8,540		8,540		8		6,723		6,723		206
Commercial:
Collateralized		4,648		4,892		4,697		2,477		2,731		1,865
Unsecured		2,062		3,334		1,719		2,396		3,121		2,234
Asset-based		2,032		2,032		604		—		—		—
SBA 7(a)		1,094		1,097		250		2,871		3,616		426
Consumer		436		476		240		466		506		265
With No Related Allowance Recorded:
Real estate mortgage:
SBA 504	$	3,007	$	3,848	$	—	$	2,982	$	3,755	$	—
Other		31,521		46,887		—		35,222		39,503		—
Real estate construction:
Residential		441		474		—		—		—		—
Commercial		5,592		9,948		—		17,424		21,085		—
Commercial:
Collateralized		9,724		17,147		—		3,657		4,994		—
Unsecured		259		357		—		156		163		—
Asset-based		—		—		—		176		176		—
SBA 7(a)		3,212		4,968		—		2,797		4,057		—
Leases		244		244		—		244		244		—
Consumer		262		372		—		162		233		—
Total Non-PCI Loans and Leases With and Without An Allowance Recorded:
Real estate mortgage	$	96,293	$	113,923	$	3,548	$	107,198	$	114,836	$	7,827
Real estate construction		14,966		19,355		62		25,450		29,138		371
Commercial		23,031		33,827		7,270		14,530		18,858		4,525
Leases		244		244		—		244		244		—
Consumer		698		848		240		628		739		265
Total	$	135,232	$	168,197	$	11,120	$	148,050	$	163,815	$	12,988

	Three Months Ended June 30,
	2013					2012
	Weighted Average Recorded Investment(1)		Interest Income Recognized			Weighted Average Recorded Investment(1)		Interest Income Recognized
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Hospitality	$	8,779	$	226		$	9,144	$	21
SBA 504		1,659		23			563		7
Other		51,327		513			54,310		536
Real estate construction:
Residential		393		—			1,289		3
Commercial		8,540		87			13,528		98
Commercial:
Collateralized		3,804		10			4,101		15
Unsecured		2,062		8			2,348		4
Asset-based		223		5			—		—
SBA 7(a)		1,094		12			2,666		39
Consumer		436		3			276		—
With No Related Allowance Recorded:
Real estate mortgage:
Hospitality	$	—	$	—		$	6,200	$	—
SBA 504		2,935		—			1,873		—
Other		25,041		133			30,358		32
Real estate construction:
Residential		441		—			778		17
Commercial		4,568		(59	)		16,187		139
Commercial:
Collateralized		4,266		—			7,199		7
Unsecured		179		—			640		—
Asset-based		—		—			174		—
SBA 7(a)		2,872		5			5,686		27
Leases		244		—			244		—
Consumer		173		—			219		—
Total Non-PCI Loans and Leases With and Without An Allowance Recorded:
Real estate mortgage	$	89,741	$	895		$	102,448	$	596
Real estate construction		13,942		28			31,782		257
Commercial		14,500		40			22,814		92
Leases		244		—			244		—
Consumer		609		3			495		—
Total	$	119,036	$	966		$	157,783	$	945

(1)

For the loans and leases (excluding PCI loans) reported as impaired at June 30, 2013 and June 30, 2012, amounts were calculated based on the period of time such loans and leases were impaired during the reporting period.

	Six Months Ended June 30,
	2013					2012
	Weighted Average Recorded Investment(1)		Interest Income Recognized			Weighted Average Recorded Investment(1)		Interest Income Recognized
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Hospitality	$	8,779	$	247		$	9,144	$	36
SBA 504		1,659		45			352		5
Other		50,276		1,010			52,640		1,062
Real estate construction:
Residential		393		—			1,289		5
Commercial		8,540		179			13,528		205
Commercial:
Collateralized		2,795		18			3,804		28
Unsecured		2,062		17			2,341		10
Asset-based		112		5			—		—
SBA 7(a)		1,094		23			2,652		60
Consumer		436		5			276		—
With No Related Allowance Recorded:
Real estate mortgage:
Hospitality	$	—	$	—		$	6,200	$	—
SBA 504		2,911		—			1,873		—
Other		20,777		190			29,861		646
Real estate construction:
Residential		441		—			778		33
Commercial		4,317		(29	)		15,878		257
Commercial:
Collateralized		2,773		—			7,097		13
Unsecured		160		—			640		—
Asset-based		—		—			87		—
SBA 7(a)		2,782		11			5,670		30
Leases		244		—			203		—
Consumer		163		—			219		—
Total Non-PCI Loans and Leases With and Without An Allowance Recorded:
Real estate mortgage	$	84,402	$	1,492		$	100,070	$	1,749
Real estate construction		13,691		150			31,473		500
Commercial		11,778		74			22,291		141
Leases		244		—			203		—
Consumer		599		5			495		—
Total	$	110,714	$	1,721		$	154,532	$	2,390

(1)

For the loans and leases (excluding PCI loans) reported as impaired at June 30, 2013 and June 30, 2012, amounts were calculated based on the period of time such loans and leases were impaired during the reporting period.

        The following tables present new troubled debt restructurings and defaulted troubled debt restructurings (excluding PCI loans) for the periods indicated:

	Three Months Ended June 30,
	2013						2012
	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(Dollars in thousands)
Troubled Debt Restructurings:
Real estate construction:
Commercial		—	$	—	$	—		1	$	1,446	$	1,446
Commercial:
Collateralized		3		3,518		3,518		3		568		568
Unsecured		2		398		398		2		23		23
Asset-based		1		2,032		2,032		—		—		—
SBA 7(a)		4		137		137		1		120		120
Consumer		1		14		14		—		—		—
Total		11	$	6,099	$	6,099		7	$	2,157	$	2,157

	Six Months Ended June 30,
	2013						2012
	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(Dollars in thousands)
Troubled Debt Restructurings:
Real estate mortgage:
SBA 504		—	$	—	$	—		1	$	563	$	563
Other		5		13,223		13,223		—		—		—
Real estate construction:
Commercial		—		—		—		1		1,446		1,446
Commercial:
Collateralized		4		3,913		3,913		5		1,174		1,174
Unsecured		2		398		398		3		38		38
Asset-based		1		2,032		2,032		—		—		—
SBA 7(a)		4		137		137		2		229		229
Consumer		1		14		14		—		—		—
Total		17	$	19,717	$	19,717		12	$	3,450	$	3,450

	Three Months Ended June 30,
	2013				2012
	Number of Loans		Recorded Investment(1)		Number of Loans		Recorded Investment(2)
	(Dollars in thousands)
Troubled Debt Restructurings That Subsequently Defaulted(3):
Real estate mortgage:
Hospitality		—	$	—		1	$	6,200
Other		1		1,350		—		—
Commercial:
Collateralized		3		788		7		828
Unsecured		—		—		2		99
SBA 7(a)		—		—		3		1,987
Total		4	$	2,138		13	$	9,114

(1)

Represents the balance at June 30, 2013 and is net of charge-offs of $1.1 million.

(2)

Represents the balance at June 30, 2012 and is net of charge-offs of $531,000.

(3)

The population of defaulted restructured loans for the period indicated includes only those loans restructured during the preceding 12-month period. The table excludes defaulted troubled debt restructurings in those classes for which the recorded investment was zero at the end of the period.

	Six Months Ended June 30,
	2013				2012
	Number of Loans		Recorded Investment(1)		Number of Loans		Recorded Investment(2)
	(Dollars in thousands)
Troubled Debt Restructurings That Subsequently Defaulted(3):
Real estate mortgage:
Hospitality		—	$	—		1	$	6,200
Other		2		2,556		1		1,725
Commercial:
Collateralized		3		788		7		828
Unsecured		—		—		2		99
SBA 7(a)		—		—		4		2,021
Total		5	$	3,344		15	$	10,873

(1)

Represents the balance at June 30, 2013 and is net of charge-offs of $1.1 million.

(2)

Represents the balance at June 30, 2012 and is net of charge-offs of $855,000.

(3)

The population of defaulted restructured loans for the period indicated includes only those loans restructured during the preceding 12-month period. The table excludes defaulted troubled debt restructurings in those classes for which the recorded investment was zero at the end of the period.

• Purchased Credit Impaired (PCI) Loans

        The following table reflects the PCI loans by portfolio segment as of the dates indicated:

	June 30, 2013						December 31, 2012
	Amount			% of Total			Amount			% of Total
	(Dollars in thousands)
Real estate mortgage	$	474,412			96	%	$	484,057			93	%
Real estate construction		15,959			3			24,645			5
Commercial		3,560			1			9,071			2
Consumer		458			—			112			—
Total gross PCI loans		494,389			100	%		517,885			100	%
Less:
Allowance for loan losses		(27,397	)					(26,069	)
Total net PCI loans	$	466,992					$	491,816

        The following table summarizes the accretable yield on the purchased credit impaired loans acquired in the FCAL acquisition and accounted for as acquired impaired loans in accordance with ASC Subtopic 310-30, "Loans and Debt Securities Acquired with Deteriorated Credit Quality" as of May 31, 2013:

	May 31, 2013
	Accretable Yield
	Covered PCI Loans			Non-Covered PCI Loans			Total
	(In thousands)
Undiscounted contractual cash flows	$	42,881		$	41,936		$	84,817
Undiscounted cash flows not expected to be collected (nonaccretable difference)		(16,050	)		(16,337	)		(32,387	)
Undiscounted cash flows expected to be collected		26,831			25,599			52,430
Estimated fair value of loans acquired		(24,341	)		(19,805	)		(44,146	)
Acquired accrued interest receivable		(66	)		(122	)		(188	)
Accretable yield	$	2,424		$	5,672		$	8,096

        The following table summarizes the changes in the carrying amount of PCI loans and accretable yield on those loans for the period indicated:

	Purchased Credit Impaired Loans
	Carrying Amount			Accretable Yield
	(In thousands)
Covered PCI Loans:
Balance, December 31, 2012	$	491,816		$	(196,022	)
Addition from the FCAL acquisition		24,341			(2,424	)
Accretion		20,297			20,297
Payments received		(87,806	)		—
Decrease in expected cash flows, net		—			9,174
Provision for credit losses		(1,295	)		—
Balance, June 30, 2013	$	447,353		$	(168,975	)
Non-Covered PCI Loans:
Balance, December 31, 2012	$	—		$	—
Addition from the FCAL acquisition		19,805			(5,672	)
Accretion		99			99
Payments received		(265	)		—
Balance, June 30, 2013	$	19,639		$	(5,573	)

        The following table presents the credit risk rating categories for PCI loans by portfolio segment as of the dates indicated. Nonclassified loans are those with a credit risk rating of either pass or special mention, while classified loans are those with a credit risk rating of either substandard or doubtful.

	June 30, 2013						December 31, 2012
	Nonclassified		Classified		Total		Nonclassified		Classified		Total
	(In thousands)
Real estate mortgage	$	288,344	$	186,068	$	474,412	$	331,341	$	152,716	$	484,057
Real estate construction		4,938		11,021		15,959		6,311		18,334		24,645
Commercial		919		2,641		3,560		3,420		5,651		9,071
Consumer		—		458		458		—		112		112
Total PCI loans	$	294,201	$	200,188	$	494,389	$	341,072	$	176,813	$	517,885

        In addition to our internal risk rating process, our federal and state banking regulators, as an integral part of their examination process, periodically review the Company's loan risk rating classifications. Our regulators may require the Company to recognize rating downgrades based on their judgments related to information available to them at the time of their examinations.