LOANS AND LEASES

9 Months Ended

Sep. 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 a portion of the 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 and lease portfolio as of the dates indicated:

	September 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	$	3,854,129		$	19,259		$	3,873,388		$	3,049,505		$	—		$	3,049,505
Covered loans		97,426			413,498			510,924			25,442			517,885			543,327
Total gross loans and leases		3,951,555			432,757			4,384,312			3,074,947			517,885			3,592,832
Unearned income		(919	)		—			(919	)		(2,535	)		—			(2,535	)
Total loans and leases, net of unearned income		3,950,636			432,757			4,383,393			3,072,412			517,885			3,590,297
Allowance for loan and lease losses:
Non-covered loans and leases		(60,551	)		—			(60,551	)		(65,899	)		—			(65,899	)
Covered loans		—			(23,235	)		(23,235	)		—			(26,069	)		(26,069	)
Total allowance for loan and lease losses		(60,551	)		(23,235	)		(83,786	)		(65,899	)		(26,069	)		(91,968	)
Total net loans and leases	$	3,890,085		$	409,522		$	4,299,607		$	3,006,513		$	491,816		$	3,498,329

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

	September 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	$	2,476,180	$	17,928	$	2,494,108	$	1,917,670	$	—	$	1,917,670
Real estate construction		180,697		1,296		181,993		129,959		—		129,959
Commercial		918,669		—		918,669		787,775		—		787,775
Leases		235,791		—		235,791		174,373		—		174,373
Consumer		30,763		35		30,798		22,487		—		22,487
Foreign		12,029		—		12,029		17,241		—		17,241
Total gross non-covered loans and leases	$	3,854,129	$	19,259	$	3,873,388	$	3,049,505	$	—	$	3,049,505
Covered Loans
Real estate mortgage	$	75,601	$	401,672	$	477,273	$	20,843	$	484,057	$	504,900
Real estate construction		9,260		10,271		19,531		—		24,645		24,645
Commercial		9,500		1,265		10,765		4,113		9,071		13,184
Consumer		3,065		290		3,355		486		112		598
Total gross covered loans	$	97,426	$	413,498	$	510,924	$	25,442	$	517,885	$	543,327
Total Loans and Leases
Real estate mortgage	$	2,551,781	$	419,600	$	2,971,381	$	1,938,513	$	484,057	$	2,422,570
Real estate construction		189,957		11,567		201,524		129,959		24,645		154,604
Commercial		928,169		1,265		929,434		791,888		9,071		800,959
Leases		235,791		—		235,791		174,373		—		174,373
Consumer		33,828		325		34,153		22,973		112		23,085
Foreign		12,029		—		12,029		17,241		—		17,241
Total gross loans and leases	$	3,951,555	$	432,757	$	4,384,312	$	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 September 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	$	31,804		$	3,432		$	24,165		$	2,096	$	1,667		$	82		$	63,246		$	27,397		$	90,643
Charge-offs		(281	)		—			(2,439	)		—		(75	)		—			(2,795	)		—			(2,795	)
Recoveries		152			179			321			—		15			3			670			5			675
Provision (negative provision)		(2,069	)		(66	)		1,022			240		332			(29	)		(570	)		(4,167	)		(4,737	)
Balance, end of period	$	29,606		$	3,545		$	23,069		$	2,336	$	1,939		$	56		$	60,551		$	23,235		$	83,786

	Nine Months Ended September 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		(3,840	)		—			(4,517	)		(114	)		(111	)		—			(8,582	)		—			(8,582	)
Recoveries		1,665			514			2,025			—			57			3			4,264			38			4,302
Provision (negative provision)		(6,919	)		(190	)		4,900			957			267			(45	)		(1,030	)		(2,872	)		(3,902	)
Balance, end of period	$	29,606		$	3,545		$	23,069		$	2,336		$	1,939		$	56		$	60,551		$	23,235		$	83,786
Amount of the allowance applicable to loans and leases:
Individually evaluated for impairment	$	3,225		$	103		$	6,147		$	—		$	240		$	—		$	9,715
Collectively evaluated for impairment	$	26,381		$	3,442		$	16,922		$	2,336		$	1,699		$	56		$	50,836
Acquired with deteriorated credit quality																						$	23,235
Loans and Leases:
Ending balance	$	2,551,781		$	189,957		$	928,169		$	235,791		$	33,828		$	12,029		$	3,951,555		$	432,757		$	4,384,312
The ending balance of the loan and lease portfolio is composed of loans and leases:
Individually evaluated for impairment	$	90,329		$	14,878		$	24,839		$	244		$	792		$	—		$	131,082
Collectively evaluated for impairment	$	2,461,452		$	175,079		$	903,330		$	235,547		$	33,036		$	12,029		$	3,820,473
Acquired with deteriorated credit quality																						$	432,757

	Three Months Ended September 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	$	42,236		$	5,496		$	21,979		$	498	$	1,735		$	117		$	72,061		$	31,463		$	103,524
Charge-offs		(1,118	)		(492	)		(492	)		—		(25	)		—			(2,127	)		(618	)		(2,745	)
Recoveries		845			11			218			—		32			2			1,108			—			1,108
Provision (negative provision)		(3,226	)		1,582			(685	)		629		(188	)		(12	)		(1,900	)		(141	)		(2,041	)
Balance, end of period	$	38,737		$	6,597		$	21,020		$	1,127	$	1,554		$	107		$	69,142		$	30,704		$	99,846

	Nine Months Ended September 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		(5,891	)		(492	)		(2,715	)		—		(258	)		—			(9,356	)		(4,085	)		(13,441	)
Recoveries		1,217			35			1,232			—		79			22			2,585			—			2,585
Provision (negative provision)		(6,794	)		(1,643	)		(805	)		1,127		(1,035	)		(250	)		(9,400	)		3,514			(5,886	)
Balance, end of period	$	38,737		$	6,597		$	21,020		$	1,127	$	1,554		$	107		$	69,142		$	30,704		$	99,846
Amount of the allowance applicable to loans and leases:
Individually evaluated for impairment	$	5,568		$	2,468		$	6,051		$	—	$	265		$	—		$	14,352
Collectively evaluated for impairment	$	33,169		$	4,129		$	14,969		$	1,127	$	1,289		$	107		$	54,790
Acquired with deteriorated credit quality																					$	30,704
Loans and Leases:
Ending balance	$	1,950,777		$	152,748		$	777,365		$	161,934	$	21,118		$	16,126		$	3,080,068		$	571,113		$	3,651,181
The ending balance of the loan and lease portfolio is composed of loans and leases:
Individually evaluated for impairment	$	100,133		$	31,792		$	19,051		$	420	$	623		$	—		$	152,019
Collectively evaluated for impairment	$	1,850,644		$	120,956		$	758,314		$	161,514	$	20,495		$	16,126		$	2,928,049
Acquired with deteriorated credit quality																					$	571,113

• 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:

	September 30, 2013						December 31, 2012
	Amount			% of Total			Amount			% of Total
	(Dollars in thousands)
Real estate mortgage	$	2,551,781			65	%	$	1,938,513			63	%
Real estate construction		189,957			5			129,959			4
Commercial		928,169			23			791,888			25
Leases		235,791			6			174,373			6
Consumer		33,828			1			22,973			1
Foreign		12,029			—			17,241			1
Total gross Non-PCI loans and leases		3,951,555			100	%		3,074,947			100	%
Less:
Unearned income		(919	)					(2,535	)
Allowance for loan and lease losses		(60,551	)					(65,899	)
Total net Non-PCI loans and leases	$	3,890,085					$	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.

	September 30, 2013						December 31, 2012
	Nonclassified		Classified		Total		Nonclassified		Classified		Total
	(In thousands)
Real estate mortgage:
Hospitality	$	182,419	$	5,654	$	188,073	$	168,489	$	12,655	$	181,144
SBA 504		42,621		5,505		48,126		48,372		5,786		54,158
Other		2,247,865		67,717		2,315,582		1,653,446		49,765		1,703,211
Total real estate mortgage		2,472,905		78,876		2,551,781		1,870,307		68,206		1,938,513
Real estate construction:
Residential		60,390		1,764		62,154		46,591		2,038		48,629
Commercial		121,221		6,582		127,803		77,503		3,827		81,330
Total real estate construction		181,611		8,346		189,957		124,094		5,865		129,959
Commercial:
Collateralized		538,101		24,392		562,493		442,293		14,802		457,095
Unsecured		104,608		1,618		106,226		67,133		2,905		70,038
Asset-based		225,110		6,788		231,898		235,075		4,355		239,430
SBA 7(a)		21,764		5,788		27,552		18,888		6,437		25,325
Total commercial		889,583		38,586		928,169		763,389		28,499		791,888
Leases		235,547		244		235,791		174,129		244		174,373
Consumer		29,089		4,739		33,828		21,733		1,240		22,973
Foreign		12,029		—		12,029		17,241		—		17,241
Total Non-PCI loans and leases	$	3,820,764	$	130,791	$	3,951,555	$	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:

	September 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	$	—	$	—	$	—	$	—	$	188,073	$	188,073
SBA 504		—		—		120		120		48,006		48,126
Other		4,623		486		3,294		8,403		2,307,179		2,315,582
Total real estate mortgage		4,623		486		3,414		8,523		2,543,258		2,551,781
Real estate construction:
Residential		—		—		—		—		62,154		62,154
Commercial		571		—		—		571		127,232		127,803
Total real estate construction		571		—		—		571		189,386		189,957
Commercial:
Collateralized		2,250		426		6,004		8,680		553,813		562,493
Unsecured		82		1,348		225		1,655		104,571		106,226
Asset-based		1,490		—		—		1,490		230,408		231,898
SBA 7(a)		72		868		201		1,141		26,411		27,552
Total commercial		3,894		2,642		6,430		12,966		915,203		928,169
Leases		—		—		244		244		235,547		235,791
Consumer		163		5		178		346		33,482		33,828
Foreign		—		—		—		—		12,029		12,029
Total non-PCI loans and leases	$	9,251	$	3,133	$	10,266	$	22,650	$	3,928,905	$	3,951,555

        At September 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 September 30, 2013, nonaccrual loans and leases totaled $50.8 million. Nonaccrual loans and leases include $3.9 million of loans 30 to 89 days past due and $36.6 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:

	September 30, 2013						December 31, 2012
	Nonaccrual		Performing		Total		Nonaccrual		Performing		Total
	(In thousands)
Real estate mortgage:
Hospitality	$	—	$	188,073	$	188,073	$	6,908	$	174,236	$	181,144
SBA 504		2,791		45,335		48,126		2,982		51,176		54,158
Other		21,628		2,293,954		2,315,582		16,585		1,686,626		1,703,211
Total real estate mortgage		24,419		2,527,362		2,551,781		26,475		1,912,038		1,938,513
Real estate construction:
Residential		826		61,328		62,154		1,057		47,572		48,629
Commercial		2,857		124,946		127,803		2,715		78,615		81,330
Total real estate construction		3,683		186,274		189,957		3,772		126,187		129,959
Commercial:
Collateralized		15,256		547,237		562,493		4,462		452,633		457,095
Unsecured		334		105,892		106,226		2,027		68,011		70,038
Asset-based		3,381		228,517		231,898		176		239,254		239,430
SBA 7(a)		2,934		24,618		27,552		4,181		21,144		25,325
Total commercial		21,905		906,264		928,169		10,846		781,042		791,888
Leases		244		235,547		235,791		244		174,129		174,373
Consumer		594		33,234		33,828		425		22,548		22,973
Foreign		—		12,029		12,029		—		17,241		17,241
Total Non-PCI loans and leases	$	50,845	$	3,900,710	$	3,951,555	$	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:

	September 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	$	24,419	$	65,910	$	90,329	$	26,475	$	80,723	$	107,198
Real estate construction		3,683		11,195		14,878		3,772		21,678		25,450
Commercial		21,905		2,934		24,839		10,846		3,684		14,530
Leases		244		—		244		244		—		244
Consumer		594		198		792		425		203		628
Total	$	50,845	$	80,237	$	131,082	$	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:

	September 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	$	8,770	$	9,611	$	319	$	8,954	$	9,640	$	2,396
SBA 504		1,649		1,649		231		1,676		1,676		324
Other		50,029		50,164		2,675		58,364		60,262		5,107
Real estate construction:
Residential		391		391		82		1,303		1,330		165
Commercial		8,541		8,541		21		6,723		6,723		206
Commercial:
Collateralized		4,483		4,752		4,340		2,477		2,731		1,865
Unsecured		787		815		361		2,396		3,121		2,234
Asset-based		3,381		3,381		1,238		—		—		—
SBA 7(a)		1,278		1,351		208		2,871		3,616		426
Consumer		429		473		240		466		506		265
With No Related Allowance Recorded:
Real estate mortgage:
SBA 504	$	2,791	$	3,785	$	—	$	2,982	$	3,755	$	—
Other		27,090		40,693		—		35,222		39,503		—
Real estate construction:
Residential		435		471		—		—		—		—
Commercial		5,511		9,923		—		17,424		21,085		—
Commercial:
Collateralized		11,813		19,542		—		3,657		4,994		—
Unsecured		217		298		—		156		163		—
Asset-based		—		—		—		176		176		—
SBA 7(a)		2,880		4,645		—		2,797		4,057		—
Leases		244		244		—		244		244		—
Consumer		363		475		—		162		233		—
Total Non-PCI Loans and Leases With and Without An Allowance Recorded:
Real estate mortgage	$	90,329	$	105,902	$	3,225	$	107,198	$	114,836	$	7,827
Real estate construction		14,878		19,326		103		25,450		29,138		371
Commercial		24,839		34,784		6,147		14,530		18,858		4,525
Leases		244		244		—		244		244		—
Consumer		792		948		240		628		739		265
Total	$	131,082	$	161,204	$	9,715	$	148,050	$	163,815	$	12,988

	Three Months Ended September 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	$	8,770	$	109	$	9,049	$	21
SBA 504		1,649		23		927		25
Other		47,411		481		30,884		443
Real estate construction:
Residential		391		—		1,283		3
Commercial		8,541		88		18,408		146
Commercial:
Collateralized		4,467		7		4,199		17
Unsecured		787		8		2,309		5
Asset-based		2,377		—		—		—
SBA 7(a)		1,278		12		2,042		20
Consumer		429		3		474		3
With No Related Allowance Recorded:
Real estate mortgage:
SBA 504	$	2,791	$	—	$	1,330	$	—
Other		25,540		410		52,200		577
Real estate construction:
Residential		435		—		753		16
Commercial		5,511		98		11,348		97
Commercial:
Collateralized		8,989		15		4,972		7
Unsecured		217		—		156		—
Asset-based		—		—		176		—
SBA 7(a)		2,846		5		3,902		19
Leases		244		—		360		—
Consumer		248		—		149		—
Total Non-PCI Loans and Leases With and Without An Allowance Recorded:
Real estate mortgage	$	86,161	$	1,023	$	94,390	$	1,066
Real estate construction		14,878		186		31,792		262
Commercial		20,961		47		17,756		68
Leases		244		—		360		—
Consumer		677		3		623		3
Total	$	122,921	$	1,259	$	144,921	$	1,399

(1)

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

	Nine Months Ended September 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	$	8,770	$	355	$	9,049	$	57
SBA 504		1,649		67		545		17
Other		46,401		1,400		27,749		886
Real estate construction:
Residential		391		—		1,283		7
Commercial		8,541		268		18,408		407
Commercial:
Collateralized		3,000		22		3,773		45
Unsecured		787		25		2,302		16
Asset-based		870		—		—		—
SBA 7(a)		1,278		35		1,996		62
Consumer		429		8		370		4
With No Related Allowance Recorded:
Real estate mortgage:
SBA 504	$	2,727	$	—	$	1,330	$	—
Other		19,826		522		48,441		1,688
Real estate construction:
Residential		435		—		753		49
Commercial		4,679		69		10,598		276
Commercial:
Collateralized		4,861		15		4,796		20
Unsecured		170		—		156		—
Asset-based		—		—		117		—
SBA 7(a)		2,557		15		3,771		61
Leases		244		—		256		—
Consumer		182		—		149		—
Total Non-PCI Loans and Leases With and Without An Allowance Recorded:
Real estate mortgage	$	79,373	$	2,344	$	87,114	$	2,648
Real estate construction		14,046		337		31,042		739
Commercial		13,523		112		16,911		204
Leases		244		—		256		—
Consumer		611		8		519		4
Total	$	107,797	$	2,801	$	135,842	$	3,595

(1)

For the loans and leases (excluding PCI loans) reported as impaired at September 30, 2013 and September 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 September 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	$	1,118	$	1,118
Other		8		4,824		4,824		4		10,119		10,119
Real estate construction:
Commercial		—		—		—		1		6,973		6,973
Commercial:
Collateralized		2		499		499		2		370		370
Unsecured		1		17		17		—		—		—
SBA 7(a)		—		—		—		2		70		70
Consumer		—		—		—		1		206		206
Total		11	$	5,340	$	5,340		11	$	18,856	$	18,856

	Nine Months Ended September 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		—	$	—	$	—		2	$	1,680	$	1,680
Other		12		16,215		16,215		4		10,119		10,119
Real estate construction:
Commercial		—		—		—		2		8,419		8,419
Commercial:
Collateralized		7		4,553		4,553		7		1,545		1,545
Unsecured		5		502		502		3		38		38
Asset-based		1		2,032		2,032		—		—		—
SBA 7(a)		4		137		137		4		299		299
Consumer		—		—		—		1		206		206
Total		29	$	23,439	$	23,439		23	$	22,306	$	22,306

	Three Months Ended September 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:
Other		—	$	—		2	$	627
Commercial:
Unsecured		2		70		—		—
SBA 7(a)		—		—		2		118
Total		2	$	70		4	$	745

(1)

Represents the balance at September 30, 2013 and no charge-off.

(2)

Represents the balance at September 30, 2012 and is net of charge-offs of $82,000.

(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.

	Nine Months Ended September 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:
Other		1	$	1,327		2	$	627
Commercial:
Collateralized		1		427		7		828
Unsecured		2		70		2		93
SBA 7(a)		—		—		3		991
Total		4	$	1,824		14	$	2,539

(1)

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

(2)

Represents the balance at September 30, 2012 and is net of charge-offs of $613,000.

(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:

	September 30, 2013						December 31, 2012
	Amount			% of Total			Amount			% of Total
	(Dollars in thousands)
Real estate mortgage	$	419,600			97	%	$	484,057			93	%
Real estate construction		11,567			3			24,645			5
Commercial		1,265			—			9,071			2
Consumer		325			—			112			—
Total gross PCI loans		432,757			100	%		517,885			100	%
Less:
Allowance for loan losses		(23,235	)					(26,069	)
Total net PCI loans	$	409,522					$	491,816

        The following table summarizes the accretable yield on the purchased credit impaired loans acquired in the FCAL acquisition 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		33,057			33,057
Payments received		(161,823	)		—
Decrease in expected cash flows, net		—			12,521
Provision for credit losses		2,872			—
Balance, September 30, 2013	$	390,263		$	(152,868	)
Non-Covered PCI Loans:
Balance, December 31, 2012	$	—		$	—
Addition from the FCAL acquisition		19,805			(5,672	)
Accretion		899			899
Payments received		(1,445	)		—
Increase in expected cash flows, net		—			(1,808	)
Balance, September 30, 2013	$	19,259		$	(6,581	)

        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.

	September 30, 2013						December 31, 2012
	Nonclassified		Classified		Total		Nonclassified		Classified		Total
	(In thousands)
Real estate mortgage	$	246,718	$	172,882	$	419,600	$	331,341	$	152,716	$	484,057
Real estate construction		4,303		7,264		11,567		6,311		18,334		24,645
Commercial		642		623		1,265		3,420		5,651		9,071
Consumer		—		325		325		—		112		112
Total PCI loans	$	251,663	$	181,094	$	432,757	$	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.